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NEW QUESTION: 1
A Deposit of a Will is ____________________
A. Making a Copy of the Will
B. When the original will is put in a sealed envelope and deposited with the Registrar who
gives a receipt
C. Same as Registration
D. Amendment to the Will
Answer: B

NEW QUESTION: 2
Yummy Doughnuts (YD) sells a variety of doughnuts and other related items through both company-owned locations and franchise locations. YD has experienced significant growth over the past five years.
However, barriers to entry are low and competition is increasing.
Linda Haas, CFA, follows YD for Gibraltar Capital. Gibraltar Capital prides itself on its thorough fundamental analysis of investment opportunities. The company uses a bottom-up approach to the investment process. Haas's security selection process utilizes residual income models to determine a stock's intrinsic value. Haas obtains YD's 2008 financial statements shown in Exhibit 1. In addition, Haas provides supporting information about YD's financials and other related material found in Exhibit 2.

Haas makes the following statements during her YD presentation to the investment committee.
Statement 1: Based on ROE mean reversion, YD's continuing residual income is assumed to decline to zero over time.
Statement 2: The residual income model states that if YD's ROE equals its equity cost of capital, then YD's intrinsic value will equal its book value per share.
Based on Exhibits 1 and 2, YD's adjusted net operating profits after taxes (NOPAT) is closest to
A. $55 million.
B. $65 million.
C. $45 million.
Answer: A
Explanation:
Explanation/Reference:
Explanation:

Note that there is no tax adjustment to the implied interest on the operating lease, because the cash operating tax number provided already included all appropriate adjustments. R&D expense is not subtracted (or if you started with earnings, it would be added back) to calculate NOPAT. However, the R&D is amortized over five years (20/5=4), which must be subtracted. As stated in Exhibit 2, cash operating taxes include all adjustments that were made. (Study Session 12, LOS 43.a)

NEW QUESTION: 3
Standard Fiscal Years are for companies that break down their fiscal years,quarters and weeks in to fiscal periods.
A. False
B. True
Answer: B

NEW QUESTION: 4

A. Option D
B. Option A
C. Option B
D. Option C
Answer: C

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