单选题In relation to an operating lease, which of the following statements is correct?
单选题Which of the following statements are correct?
(1)Capital market securities are assets for the seller but liabilities for the buyer
(2)Financial markets can be classified into exchange and over-the-counter markets
(3)A secondary market is where securities are bought and sold by investors
单选题Which of the following are descriptions of basis risk?
(1) It is the difference between the spot exchange rate and currency futures exchange rate
(2) It is the possibility that the movements in the currency futures price and spot price will be different
(3) It is the difference between fixed and floating interest rates
(4) It is one of the reasons for an imperfect currency futures hedge
单选题Pop Co is switching from using mainly long-term fixed rate finance to fund its working capital to using mainly short-term variable rate finance
单选题In relation to an irredeemable security paying a fixed rate of interest, which of the following statements is correct?
单选题Acompanywhosehomecurrencyisthedollar($)expectstoreceive500,000pesosinsixmonths’timefromacustomerinaforeigncountry.Thefollowinginterestratesandexchangeratesareavailabletothecompany:Workingtothenearest$100,whatisthesix-monthdollarvalueoftheexpectedreceiptusingamoney-markethedge?
单选题An investor plans to exchange $1,000 into euros now, invest the resulting euros for 12 months, and then exchange the euros back into dollars at the end of the 12-month period. The spot exchange rate is €1·415 per $1 and the eurointerest rate is 2% per year. The dollar interest rate is 1·8% per year.
Compared to making a dollar investment for 12 months, at what 12-month forward exchange rate will the investormake neither a loss nor a gain?
单选题On a market value basis, GFV Co is financed 70% by equity and 30% by debt. The company has an after-tax cost of debt of 6% and an equity beta of 1·2. The risk-free rate of return is 4% and the equity risk premium is 5%.
What is the after-tax weighted average cost of capital of GFV Co?
单选题The following scenario relates to questions 16 to 20
单选题Country X uses the dollar as its currency and country Y uses the dinar
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