Fight Finance

(a) Only (i) is true.

(b) Only (ii) is true.

(c) Only (iii) is true.

(d) Only (i) and (ii) is true.

(e) All statements (i), (ii) and (iii) are true.

If the USD appreciates against the AUD, the American terms quote of the AUD will or ?

(a) Expected future growth rate of the dividend.

(b) Actual historical growth rate of the dividend.

(c) Expected future growth rate of the total required return on equity r.

(d) Actual historical growth rate of the market share price.

(e) Actual historical growth rate of the return on equity (ROE) defined as (Net Income / Owners Equity).

(a) An increase in revenue (Rev).

(b) An increase in rent expense (a type of recurring fixed cost, FC).

(c) An increase in depreciation expense (Depr).

(d) An increase in inventories (a current asset).

(e) An decrease in interest expense (IntExp).

In a takeover deal where the offer is 100% scrip (shares), the merged firm's number of shares will be equal to the sum of the acquirer and target firms' original number of shares. or ?

(a) -16.67%, 20%

(b) -5%, 20%

(c) 0%, 20%

(d) 7.14%, 20%

(e) 11.67%, 0%

(a) Buyers of futures are required to pay an initial margin at the start.

(b) Futures are a zero-sum game in the sense that the winner gains at the expense of the loser.

(c) Buyers of futures have to pay the futures price at the start.

(d) Buyers of futures do not care about the credit risk of the original future seller since the contract is novated by the exchange.

(e) Speculators who sell futures hope that the underlying asset price falls.

(a) Long a stock only.

(b) Long a stock and long a bond.

(c) Long a stock and short a bond.

(d) Short a stock and long a bond.

(e) Short a stock and short a bond.

(a) Is the weighted average time that an asset’s cash flows are received, usually measured in years.

(b) Divided by (1+y) equals the modified duration, where y is the yield to maturity given as an effective annual rate and duration is measured in years.

(c) Of a zero-coupon bond is equal to the bond’s maturity.

(d) Of a fixed-coupon-paying bond will be less than the bond’s maturity.

(e) Of a portfolio is an arithmetic average of the Macaulay durations of the assets in the portfolio, weighted by their face values.

(a) Arthur’s opportunity cost of picking one date per hour is 0.25 coconuts.

(b) Bindi’s opportunity cost of picking one date per hour is 2 coconuts.

(c) Arthur’s opportunity cost of picking one coconut per hour is 4 dates.

(d) Bindi’s opportunity cost of picking one coconut per hour is 2 dates.

(e) The gradients (rise over run) of the lines in the graph are measured in coconuts per one date per hour.