VEE - 3 Exam Complete Questions And Answers | Latest
Update
1. You are given the following inventory turnover by year E
for Spectorarth, a light bulb manufacturer. Operations are becoming
YearInventory turnover20115.620125.420135.1 more eflcient
Which of the following is the least likely explanation for
this pattern?
A
Changes in Spectorarth's product mix
B
Spectorarth decided to reduce its risk of running out of
inventory
C
Spectorarth expects the suppliers to increase their
price
D
Spectorarth has introduced more products
E
Operations are becoming more efficient
2. Which of the following examples would best be de- B
scribed as a pull on liquidity? a reduced short-term line
A of credit
a delinquent account receivable
B
a reduced short-term line of credit
C
a short-term obligation coming due
D
an uncollectible account receivable
E
an obsolete inventory
3.
, VEE - 3 Exam Complete Questions And Answers | Latest
Update
A 91-day U.S. Treasury bill with a face value of $1,000 D
is currently selling at $988. 4.87%
What is the bond equivalent yield for the Treasury bill?
A
1.21%
B
4.75%
C
4.80%
D
4.87%
E
4.96%
4. Which of the following short-term borrowing options A
offers the most attractive rate for borrowing $2 million A line of credit at 4%, with a
for 3 months? commitment fee of 30 ba-
Note that all fees will be pro-rated for the 3 months. sis points
AA line of credit at 4%, with a commitment fee of 30
basis points
B
A line of credit at 5%, with commitment fee of 45 basis
points
CA banker's acceptance, at an all inclusive rate of 4.5%
DCommercial paper, at 4% (all-inclusive), with 30 basis
points of commission and 20 basis points of backup
fees
E
Commercial paper, at 5% (all-inclusive), with 25 basis
point of commission and 20 basis points of backup
fees
Update
1. You are given the following inventory turnover by year E
for Spectorarth, a light bulb manufacturer. Operations are becoming
YearInventory turnover20115.620125.420135.1 more eflcient
Which of the following is the least likely explanation for
this pattern?
A
Changes in Spectorarth's product mix
B
Spectorarth decided to reduce its risk of running out of
inventory
C
Spectorarth expects the suppliers to increase their
price
D
Spectorarth has introduced more products
E
Operations are becoming more efficient
2. Which of the following examples would best be de- B
scribed as a pull on liquidity? a reduced short-term line
A of credit
a delinquent account receivable
B
a reduced short-term line of credit
C
a short-term obligation coming due
D
an uncollectible account receivable
E
an obsolete inventory
3.
, VEE - 3 Exam Complete Questions And Answers | Latest
Update
A 91-day U.S. Treasury bill with a face value of $1,000 D
is currently selling at $988. 4.87%
What is the bond equivalent yield for the Treasury bill?
A
1.21%
B
4.75%
C
4.80%
D
4.87%
E
4.96%
4. Which of the following short-term borrowing options A
offers the most attractive rate for borrowing $2 million A line of credit at 4%, with a
for 3 months? commitment fee of 30 ba-
Note that all fees will be pro-rated for the 3 months. sis points
AA line of credit at 4%, with a commitment fee of 30
basis points
B
A line of credit at 5%, with commitment fee of 45 basis
points
CA banker's acceptance, at an all inclusive rate of 4.5%
DCommercial paper, at 4% (all-inclusive), with 30 basis
points of commission and 20 basis points of backup
fees
E
Commercial paper, at 5% (all-inclusive), with 25 basis
point of commission and 20 basis points of backup
fees
