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NEW QUESTION: 1
A test to determine whether a convertible security is dilutive or antidilutive is to calculate EPS
A. without inclusion of the security.
B. with inclusion of the security.
C. for the security alone and compare it to the EPS with inclusion of the security.
D. for the security alone and compare it to the EPS without inclusion of the security.
E. for the security alone.
Answer: D
Explanation:
Explanation/Reference:
Explanation:
By comparing the EPS of the security alone with the EPS without inclusion of the security, if the former is smaller than the latter, then the security is dilutive which means it causes EPS to decline.

NEW QUESTION: 2
Which of the following steps is NOT one of the eight detailed steps of a Business Impact Assessment (BIA):
A. Creating data gathering techniques.
B. Calculating the risk for each different business function.
C. Notifying senior management of the start of the assessment.
D. Identifying critical business functions.
Answer: C
Explanation:
Source: HARRIS, S., CISSP All- In-One Exam Guide, 3rd. Edition, 2005, Chapter 9,
Page 701.
There have been much discussion about the steps of the BIA and I struggled with this before
deciding to scrape the question about "the four steps," and re-write the question using the AIO for
a reference. This question should be easy.... if you know all eight steps.
The eight detailed and granular steps of the BIA are:
1.Select Individuals to interview for the data gathering.
2.Create data gathering techniques (surveys, questionnaires, qualitative and quantitative approaches).
3.Identify the company's critical business functions.
4.Identify the resources that these functions depend upon.
5.Calculate how long these functions can survive without these resources.
6.Identify vulnerabilities and the threats to these functions.
7.Calculate risk for each of the different business functions.
8.Document findings and report them to management.
9.Shon goes on to cover each step in Chapter

NEW QUESTION: 3
A brokerage firm, which has $10 million in S&P500 stocks, enters into an equity swap with a pension fund which currently has $10 million in a short term savings account earning LIBOR. If these two entities were to arrange a proper equity swap, in which payments are to be made annually, what would be the net payment for a period that saw the S&P500 net 12% and LIBOR set at 8%?
A. Pension plan makes a net payment of $400,000.
B. Brokerage firm makes a net payment of $400,000.
C. Pension plan makes a net payment of $200,000.
Answer: B
Explanation:
A proper swap would involve the brokerage firm making payments equal to S&P 500 returns in exchange for LIBOR.
Brokerage pays 12% of 10 million = $1,200,000. Pension Pays 8% of 10 million = 800,000. Net payable
(broker's perspective): $400,000