单选题A company has just paid an ordinary share dividend of 32·0 cents and is expected to pay a dividend of 33·6 cents in one year’s time. The company has a cost of equity of 13%.
What is the market price of the company’s shares to the nearest cent on an ex dividend basis?
单选题Which of the following statements are correct?
(1)The general level of interest rates is affected by investors’ desire for a real return
(2)Market segmentation theory can explain kinks (discontinuities) in the yield curve
(3)When interest rates are expected to fall, the yield curve could be sloping downwards
单选题Lane Co has in issue 3% convertible loan notes which are redeemable in five years time at their nominal value of $100 per loan note
单选题A company needs $150,000 each year for regular payments. Converting the company’s short-term investments into cash to meet these regular payments incurs a fixed cost of $400 per transaction. These short-term investments pay interest of 5% per year, while the company earns interest of only 1% per year on cash deposits.
According to the Baumol Model, what is the optimum amount of short-term investments to convert into cash ineach transaction?
单选题Aninvestmentprojecthasacostof$12,000,payableatthestartofthefirstyearofoperation.Thepossiblefuturecashflowsarisingfromtheinvestmentprojecthavethefollowingpresentvaluesandassociatedprobabilities:Whatistheexpectedvalueofthenetpresentvalueoftheinvestmentproject?
单选题Which of the following is/are usually seen as forms of market failure where regulation may be a solution?
1 Imperfect competition
2 Social costs or externalities
3 Imperfect information
单选题TKQ Co has just paid a dividend of 21 cents per share and its share price one year ago was $3·10 per share. The total shareholder return for the year was 19.7%
What is the current share price?
单选题Which of the following are financial intermediaries?
(1)Venture capital organisation
(2)Pension fund
(3)Merchant bank
单选题Which of the following statements are correct?
(1)Share option schemes always reward good performance by managers
(2)Performance-related pay can encourage dysfunctional behaviour
(3)Value for money as an objective in not-for-profit organisations requires the pursuit of economy, efficiency and effectiveness
单选题ThefollowingfinancialinformationrelatestoQKCo,whoseordinaryshareshaveanominalvalueof$0·50pershare:Onanhistoricbasis,whatisthenetassetvaluepershareofQKCo?
单选题Which of the following government actions would lead to an increase in aggregate demand?
(1) Increasing taxation and keeping government expenditure the same
(2) Decreasing taxation and increasing government expenditure
(3) Decreasing money supply
(4) Decreasing interest rates
单选题Which of the following statements are correct?
(1)The sensitivity of a project variable can be calculated by dividing the project net present value by the present value of the cash flows relating to that project variable
(2)The expected net present value is the value expected to occur if an investment project with several possible outcomes is undertaken once
(3)The discounted payback period is the time taken for the cumulative net present value to change from negative to positive
单选题Which of the following statements are correct?
(1)Interest rate options allow the buyer to take advantage of favourable interest rate movements
(2)A forward rate agreement does not allow a borrower to benefit from a decrease in interest rates
(3)Borrowers hedging against an interest rate increase will buy interest rate futures now and sell them at a future date
单选题Which of the following statements is/are correct?
1 An increase in the cost of equity leads to a fall in share price
2 Investors faced with increased risk will expect increased return as compensation
3 The cost of debt is usually lower than the cost of preference shares
单选题Which of the following statements are correct?
(1)If a capital market is weak form efficient, an investor cannot make abnormal returns by using technical analysis
(2)Operational efficiency means that efficient capital markets direct funds to their most productive use
(3)Tests for semi-strong form efficiency focus on the speed and accuracy of share price responses to the arrival of new information
单选题Drumlin Co has $5m of $0
单选题Peach Cos latest results are as follows:
$000
Profit before interest and taxation 2,500
Profit before taxation 2,250
Profit after tax 1,400
In addition, extracts from its latest statement of financial position are as follows:
$000
Equity 10,000
Non-current liabilities 2,500
What is Peach Cos return on capital employed (ROCE)?
单选题Which of the following statements concerning profit are correct?
1 Accounting profit is not the same as economic profit
2 Profit takes account of risk
3 Accounting profit can be manipulated by managers
单选题Andrew Co is a large listed company financed by both equity and debt
单选题The owners of a private company wish to dispose of their entire investment in the company