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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.
Compare the 2008 long-term obligations to capitalization ratio benchmarks to Marietta's ratio. Marietta is between the:
A. BBB and BB benchmark ratios.
B. BB and B benchmark ratios.
C. A and BBB benchmark ratios.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
Mariettas long-term obligations-to-capitalization ratio of 59.4% is between the BBB median (56.3%) and the BB median (68.5%).
(Study Session 14, LOS 51.c)
How are changes to a policy enabled and made current?
A. elevate policyset
B. enable policyset
C. promote policyset
D. activate policyset
Answer: A
Note: This question is part of a series of questions that present the same scenario. Each question in the series contains a unique solution that might meet the stated goals. Some question sets might have more than one correct solution, while others might not have a correct solution.
After you answer a question in this section, you will NOT be able to return to it. As a result, these questions will not appear in the review screen.
You are a Dynamics 365 Finance system administrator.
Users report that purchase order numbers are being generated in a non-continuous configuration during bulk purchase order creation.
You need to determine how to improve performance.
Solution: Change the number sequence to a continuous number sequence.
Does the solution meet the goal?
A. Yes
B. No
Answer: B
Explanation:
Reference:
https://dynamics-tips.com/number-sequences-explained-d365-finance-and-operations/
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