单选题An investor believes that they can make abnormal returns by studying past share price movements. In terms of capital market efficiency, to which of the following does the investor’s belief relate?

单选题A company has annual credit sales of $27 million and related cost of sales of $15 million. The company has the following targets for the next year: Trade receivables days 50 days Inventory days 60 days Trade payables 45 days Assume there are 360 days in the year. What is the net investment in working capital required for the next year?

单选题A company has annual after-tax cash flows of $2 million per year which are expected to continue in perpetuity

单选题Which of the following is LEAST likely to fall within financial management?

单选题Which of the following financial instruments will NOT be traded on a money market?

单选题Thefollowinginformationrelatestoacompany:Whichofthefollowingstatementsiscorrect?

单选题Acompanyisevaluatinganinvestmentprojectwiththefollowingforecastcashflows:Usingdiscountratesof15%and20%,whatistheinternalrateofreturnoftheinvestmentproject?

单选题Which of the following statements is/are correct? (1)Monetary policy seeks to influence aggregate demand by increasing or decreasing the money raised through taxation (2)When governments adopt a floating exchange rate system, the exchange rate is an equilibrium between demand and supply in the foreign exchange market (3)Fiscal policy seeks to influence the economy and economic growth by increasing or decreasing interest rates

单选题Which of the following statements are correct? 1 Maximising market share is an example of a financial objective 2 Shareholder wealth maximisation is the primary financial objective for a company listed on a stock exchange 3 Financial objectives should be quantitative so that their achievement can be measured

单选题Which of the following statements is/are correct? (1)The asset beta reflects both business risk and financial risk (2)Total risk is the sum of systematic risk and unsystematic risk (3)Assuming that the beta of debt is zero will understate financial risk when ungearing an equity beta

单选题Which of the following statements is/are correct? (1)Factoring with recourse provides insurance against bad debts (2)The expertise of a factor can increase the efficiency of trade receivables management for a company

单选题Which of the following statements is/are correct? 1 Securitisation is the conversion of illiquid assets into marketable securities 2 The reverse yield gap refers to equity yields being higher than debt yields 3 Disintermediation arises where borrowers deal directly with lending individuals

单选题Governments have a number of economic targets as part of their fiscal policy. Which of the following government actions relate predominantly to fiscal policy? 1 Decreasing interest rates in order to stimulate consumer spending 2 Reducing taxation while maintaining public spending 3 Using official foreign currency reserves to buy the domestic currency 4 Borrowing money from the capital markets and spending it on public works

单选题Which of the following would you expect to be the responsibility of financial management?

案例分析题Hebac Co is preparing to launch a new product in a new market which is outside its current business operations. The company has undertaken market research and test marketing at a cost of $500,000, as a result of which it expects the new product to be successful. Hebac Co plans to charge a lower selling price initially and then increase the selling price on the assumption that the new product will establish itself in the new market. Forecast sales volumes, selling prices and variable costs are as follows: Selling price and variable cost are given here in current price terms before taking account of forecast selling price inflation of 4% per year and variable cost inflation of 5% per year. Incremental fixed costs of $500,000 per year in current price terms would arise as a result of producing the new product. Fixed cost inflation of 8% per year is expected. The initial investment cost of production equipment for the new product will be $2.5 million, payable at the start of the first year of operation. Production will cease at the end of four years because the new product is expected to have become obsolete due to new technology. The production equipment would have a scrap value at the end of four years of $125,000 in future value terms. Investment in working capital of $1.5 million will be required at the start of the first year of operation. Working capital inflation of 6% per year is expected and working capital will be recovered in full at the end of four years. Hebac Co pays corporation tax of 20% per year, with the tax liability being settled in the year in which it arises. The company can claim tax-allowable depreciation on a 25% reducing balance basis on the initial investment cost, adjusted in the final year of operation for a balancing allowance or charge. Hebac Co currently has a nominal after-tax weighted average cost of capital (WACC) of 12% and a real after-tax WACC of 8.5%. The company uses its current WACC as the discount rate for all investment projects. Required:

案例分析题Nesud Co has credit sales of $45 million per year and on average settles accounts with trade payables after 60 days

问答题(b)Critically discuss if sensitivity analysis will assist Hraxin Co in assessing the risk of the investment project. (6 marks)

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