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A 30-day Bank Accepted Bill has a face value of $1,000,000. The interest rate is 8% pa and there are 365 days in the year. What is its price now? There are a number of ways that assets can be depreciated. Generally the government's tax office stipulates a certain method. But if it didn't, what would be the ideal way to depreciate an asset from the perspective of a businesses owner? Which of the following discount rates should be the highest for a levered company? Ignore the costs of financial distress. A 30-day Bank Accepted Bill has a face value of$1,000,000. The interest rate is 2.5% pa and there are 365 days in the year. What is its price now?

You deposit cash into your bank account. Have you or debt?

Mr Blue, Miss Red and Mrs Green are people with different utility functions. Which of the statements about the 3 utility functions is NOT correct? An investor owns a portfolio with:

• 80% invested in stock A; and
• 20% invested in stock B.

Today there was a:

• 10% rise in stock A's price; and
• No change in stock B's price.

No dividends were paid on either stock. What was the total historical portfolio return on this day? All returns above and answer options below are given as effective daily rates.

A risk manager has identified that their pension fund’s continuously compounded portfolio returns are normally distributed with a mean of 5% pa and a standard deviation of 20% pa. The fund’s portfolio is currently valued at \$1 million. Assume that there is no estimation error in the above figures. To simplify your calculations, all answers below use 2.33 as an approximation for the normal inverse cumulative density function at 99%. All answers are rounded to the nearest dollar. Which of the following statements is NOT correct?

The Du Pont formula is:

$$\dfrac{\text{Net Profit}}{\text{Sales}} \times \dfrac{\text{Sales}}{\text{Total Assets}} \times \dfrac{\text{Total Assets}}{\text{Owners' Equity}}$$

Which of the following statements about the Du Pont formula is NOT correct?

This question is about the Balance of Payments.

Assume that all foreign and domestic assets are either debt which makes interest income or equity which makes dividend income, and vice versa for liabilities which cost interest and dividend payments, respectively.

Which of the following statements is NOT correct?