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NEW QUESTION: 1
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.
Based on the available information, Sanders should:
A. hold the Marietta bonds because the ratios are consistent with a BBB-rated bond.
B. sell the Marietta bonds because the ratios are consistent with a BB-rated bond.
C. sell the Marietta bonds because the ratios are consistent with a BBB-rated bond.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
First, compare Mariettas ratios to the median ratios:
Marietta's EBITDA/interest (6.45) is between the A median (8.8) and the BBB median (5.5).
Marietta's EBIT/interest (4.34) is between the A median (5.9) and the BBB median (3.2).
Marietta's EBIT-to-sales ratio of 18.3% is between the A median (18.8%) and the BBB median (15-7%).
Marietta's free CFO-to-LT obligations ratio of 3.9% is between the BBB median (5.7%) and the BB median (3.4%).
Marietta's long-term obligations-to-capitalization ratio of 59.4% is between the BBB median (56.3%) and the BB median (68.5%).
Next, compare Marietta's yield spread to 20-year yield spreads by bond rating:
Marietta's yield spread of 1.55% is comparable to the average for A-rated bonds.
Therefore, Sanders should recommend selling the Marietta bonds because the spread is comparable to A- rated bonds, but the ratios are more consistent with a BBB rating. (Study Session 14, LOS 51 -d)

NEW QUESTION: 2
You have a client computer that runs Windows 8 Enterprise.
The computer uses BitLocker Drive Encryption (BitLocker) on a fixed disk that only stores data.
You need to prevent any data from being written to the fixed disk.
What should you do?
A. Run the Lock-BitLocker cmdlet.
B. Run the manage-bde command and specify the -off switch.
C. Run the manage-bde command and specify the -pause switch.
D. Run the Disable-BitLocker cmdlet.
Answer: C

NEW QUESTION: 3
Note: This question is part of a series of questions that present the same scenario. Each question in the series
contains a unique solution. Determine whether the solution meets the stated goals.
You are developing and deploying several ASP.Net web applications to Azure App Service. You plan to save
session state information and HTML output. You must use a storage mechanism with the following
requirements:
* Share session state across all ASP.NET web applications
* Support controlled, concurrent access to the same session state data for multiple readers and a single
writer
* Save full HTTP responses for concurrent requests
You need to store the information.
Proposed Solution: Deploy and configure Azure Cache for Redis. Update the web applications.
.
Does the solution meet the goal?
A. No
B. Yes
Answer: A

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