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NEW QUESTION: 1
Jerry Sanders, CFA, has been asked to analyze the 20-year bonds of Marietta Tech, Inc., which are currently being held in a corporate bond portfolio managed by a colleague, and to recommend whether the bonds should be sold or held. The bonds currently have a yield spread of 1.55% over Treasuries.
Marietta Tech, Inc. designs, manufactures, and markets specialty trucks and truck bodies mounted on new truck chassis produced by others, including concrete mixers, refuse bodies, fire and emergency vehicles, defense trucks, cut-away and dry freight van bodies, refrigerated units, stake bodies, and other specialized trucks. Marietta also manufactures fiberglass wind deflectors, armored trucks, shuttle buses, and cargo vans. Marietta's customers are located in the United States and Canada.
Exhibit 1: Selected Financial Data for Marietta Tech, Inc. (in thousands of $)


At lunch Sanders discusses the credit analysis of various types of bonds with Elizabeth Yan, who was just hired as a bond analyst. Yan makes the following statements:
Statement 1: An analysis of the issuer's business and operating risks is important to the analysis of corporate bond credit risk but not important for the credit analysis of asset backed securities (ABS).
Statement 2: The unique bond covenants in a municipal bond's trust indenture require an additional level of credit analysis not necessary in a corporate credit analysis.
Based on the available information, Sanders should:
A. sell the Marietta bonds because the ratios are consistent with a BB-rated bond.
B. hold the Marietta bonds because the ratios are consistent with a BBB-rated bond.
C. sell the Marietta bonds because the ratios are consistent with a BBB-rated bond.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
First, compare Mariettas ratios to the median ratios:
Marietta's EBITDA/interest (6.45) is between the A median (8.8) and the BBB median (5.5).
Marietta's EBIT/interest (4.34) is between the A median (5.9) and the BBB median (3.2).
Marietta's EBIT-to-sales ratio of 18.3% is between the A median (18.8%) and the BBB median (15-7%).
Marietta's free CFO-to-LT obligations ratio of 3.9% is between the BBB median (5.7%) and the BB median (3.4%).
Marietta's long-term obligations-to-capitalization ratio of 59.4% is between the BBB median (56.3%) and the BB median (68.5%).
Next, compare Marietta's yield spread to 20-year yield spreads by bond rating:
Marietta's yield spread of 1.55% is comparable to the average for A-rated bonds.
Therefore, Sanders should recommend selling the Marietta bonds because the spread is comparable to A- rated bonds, but the ratios are more consistent with a BBB rating. (Study Session 14, LOS 51 -d)

NEW QUESTION: 2
トレーディングパートナ間で転送されるドキュメントを保護するためにメッセージが暗号化され、デジタル署名される場合、最大の懸念は次のとおりです。
A. ハッカーはメッセージを盗聴できます。
B. 取引パートナーはメッセージの送信を拒否できます。
C. トレーディングパートナはメッセージの受信を拒否できます。
D. ハッカーは偽造メッセージを導入できます。
Answer: D

NEW QUESTION: 3
Click on the Exhibit Button to view the Formula Sheet. When is a broker allowed to assume a deal is closed:
A. When the principals give a written undertaking for
B. When an acknowledgement is received from the princ
C. When one of the principals confirms the deal.
D. When both back offices acknowledge the deal.
Answer: B

NEW QUESTION: 4
IBM Business Process Manager can integrate with Enterprise Content Management servers that support which standard?
A. CMIS
B. BPEL
C. BPMN
D. XPDL
Answer: A
Explanation:
Explanation/Reference:
Reference: https://www.ibm.com/developerworks/bpm/bpmjournal/1312_mcelroy/1312_mcelroy.html

Which three tasks should you perform?

Your network contains two Active Directory forests named contoso.com and litwareinc.com. You deploy System Center 2012 R2 Configuration Manager Service Pack 1 (SP1) to the contoso.com forest. You deploy the Configuration Manager client to all of the client computers in…

What are two possible ways to achieve the goal?

Your network contains a single Active Directory domain named contoso.com. The domain contains a System Center 2012 R2 Configuration Manager Service Pack 1 (SP1) deployment. The relevant servers are configured as shown in the following table. The Configuration Manager deployment…

Which client settings should you configure?

You manage s System Center 2012 R2 Configuration Manager Service Pack 1 (SP1) deployment. You need to ensure that Configuration Manager clients can use the Application Catalog. Which client settings should you configure? A. Software Metering B. Computer Agent C.…

What to configure for App1 and Package1.

HOTSPOT You have a System Center 2012 R2 Configuration Manager Service Pack 1 (SP1) stand-alone primary site. You have a Configuration Manager application named App1 and a Configuration Manager package named Package1. You need to ensure that App1 and Package1…

What should you do?

Your network contains a System Center 2012 R2 Configuration Manager Service Pack 1 (SP1) environment. You deploy a Microsoft Office 2010 package to all client computers by using Configuration Manager. Your company purchases Office 2013. You need to ensure that…

Which site configuration should you use?

Your company has 120,000 client computers. You plan to deploy System Center 2012 R2 Configuration Manager Service Pack 1 (SP1) to the computers. You need to install Configuration Manager by using the fewest number of sites possible. Which site configuration…