Bloomberg Concept Questions and Answers Already Passed

Bloomberg Concept Questions and Answers Already Passed A rise in which of the following inputs will increase an absolute valuation? Earnings estimates A rise in which of the following measures would typically send a government bond price up? Creditworthiness A wedding planning company has a high fixed-cost base and a lot of debt. Who would you rather be? A shareholder in a booming economy. As a general rule, what percentage of debt to GDP will make a government's bond yields spike? there is no general rule At its peak at the end of 1999, Microsoft had a market cap of $600B, It was the apple of its day as PC sales were booming and most ran Microsoft software. Revenue was growing 30% per year. The P/E ratio peaked at 70.0x. Looking at this chart, what happen in the subsequent 15years? The P/E ratio drifted downwards, and this more than offset earnings growth, meaning that the shares went down By what mechanism do interest rates affect currency values? Global investors are attracted by higher bond yields in high interest rate countries. Company X was expected to have earnings per share of $0.52 for the upcoming quarter. On the day of the results, the company reported earnings per share of $0.83. What happened to the share price when the stock market opened? There is not enough information to tell. Engines are the most expensive, heavy component on an aircraft and are designed with detailed specifications. Which of the following would likely be the best theme for a Rolls-Royce analyst research note to help a portfolio manager decide between investing in Rolls-Royce or United Technologies? A comparison of the commercial prospects of new aircraft models Here is the vicious deflationary cycle. What step connects the lower left gray arrow to the upper right blue arrow? prices decline How accurately do GDP statistics portray the economy and why? inaccurately because the scope of GDP measurements can change How do earnings yields differ from bond yields? The cash flow from equities can continue indefinitely while the cash flow from most bonds comes to an end. How do investors compare bonds? by comparing the yields of single bonds How have economic forecasts for this country (US) evolved? minimal change How is enterprise value calculated? Enterprise value = market cap - cash + debt If the earnings per share of a company is $1 and the earnings yield is 2%, What is the price per share? $50 Investors who fear rising inflation may buy Treasury Inflation Protected Securities (TIPS). How do TIPS shield lenders from inflation? By compensating investors for inflation The purchase of which of the following products is most affected by interest rates? A house Were the two oil crises in the 1970s linked to deflation or inflation? inflation