1 . The differencebetween a firm’s balance sheet assets and liabilities is equal to the firm’s:
　　A)market value ofequity.
　　B)intrinsic value of equity.
　　C)book value ofequity.
　　The correct answer wasC
　　Book value of equityis equal to balance sheet assets minus liabilities.
　　2 . Industry analysisis most likely to provide an analyst with insight about a company’s:
　　A)competitivestrategy.
　　B)financialperformance.
　　C)pricing power.
　　The correct answer wasC
　　Industry analysisprovides a framework for an analyst to understand a firm in relation to itscompetitive environment, which determines how much pricing power a firm has.Competitive strategy and financial performance are aspects of company analysis.
　　3 . Use the followinginformation and the dividend discount model to find the value of GoFlower,Inc.’s, common stock.
　　§    Last year’s dividend was $3.10 per share.
　　§    The growth rate in dividends is estimated tobe 10% forever.
　　§    The return on the market is expected to be12%.
　　§    The risk-free rate is 4%.
　　§    GoFlower’s beta is 1.1.
　　A)$121.79.
　　B)$34.95.
　　C)$26.64.
　　The correct answer was A
　　The required returnfor GoFlower is 0.04 + 1.1(0.12 – 0.04) = 0.128 or 12.8%. The expect dividendis ($3.10)(1.10) = $3.41. GoFlower’s common stock is then valued using theinfinite period dividend discount model (DDM) as ($3.41) / (0.128 – 0.10) =$121.79.
　　4 . Which of thefollowing statements about the industry life cycle is most accurate?
　　A)The mature stage isfollowed by a shakeout stage and a decline stage.
　　B)Industry growthrates are highest in the embryonic stage.
　　C)The growth stage istypically characterized by decreasing prices.
　　The correct answer wasC
　　Prices tend todecrease in the growth stage as firms begin to realize economies of scale inproduction. The stages of the industry life cycle, in order, are embryonic,growth, shakeout, mature, and decline. Industry growth is slow during theembryonic stage as firms develop products and attempt to gain customeracceptance.
　　5 . Market sharestability within an industry is least likely to result from a high level of:
　　A)product innovation.
　　B)barriers to entry.
　　C)switching costs.
　　The correct answerwas: A
　　Frequent introductionsof new products and innovations tend to make firms’ market shares within anindustry less stable. High barriers to entry into the industry and highswitching costs for customers to change to a competing product both contributeto market share stability.

 　　CFA官方微信　　
　　掃一掃微信，*9時(shí)間獲取2014年CFA考試報(bào)名時(shí)間和考試時(shí)間提醒
　　
　　高頓網(wǎng)校特別提醒：已經(jīng)報(bào)名2014年CFA考試的考生可按照復(fù)習(xí)計(jì)劃有效進(jìn)行！另外，高頓網(wǎng)校2014年CFA考試輔導(dǎo)高清網(wǎng)絡(luò)課程已經(jīng)開通，通過針對性地講解、訓(xùn)練、答疑、?？?，對學(xué)習(xí)過程進(jìn)行全程跟蹤、分析、指導(dǎo)，可以幫助考生全面提升備考效果。
　　報(bào)考指南：2014年CFA考試備考指南
　　免費(fèi)題庫：2014年CFA免費(fèi)題庫
　　考前沖刺：CFA考試備考專題
　　高清網(wǎng)課：CFA考試網(wǎng)絡(luò)課程