Fight Finance

(a) $13,369,963.37

(b) $6,400,000.00

(c) $985,735.05

(d) $985,421.17

(e) $156,250.00

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

(a) $1 cash dividend when the pre-announcement stock price was $5.

(b) On-market buy-back of 20% of the company's outstanding stock.

(c) 5 for 4 stock split.

(d) 1 for 5 bonus issue.

(e) 1 for 4 rights issue at a subscription price of $3 when the pre-announcement stock price was $5.

(a) Under priced and should be bought.

(b) Under priced and should be sold.

(c) Over priced and should be bought.

(d) Over priced and should be sold.

(e) Fairly priced and an arbitrageur would be indifferent to buying or selling them.

(a) All people would appear rational to an economist since they prefer more wealth to less.

(b) Mrs Green and Miss Red would appear unusual to an economist since they are not risk averse.

(c) Mr Blue's certainty equivalent of the gamble is $64. This is less than his current wealth of $256 which is why he would refuse the gamble.

(d) Miss Red's certainty equivalent of the gamble is $256. This is the same as her current wealth of $256 which is why she would be indifferent to playing or not.

(e) Mrs Green's certainty equivalent of the gamble is $512. This is more than her current wealth of $256 which is why she would love to play.

(a) Higher debt leads to higher interest expense.

(b) Higher interest expense leads to lower profit before tax, following on from above.

(c) Lower profit before tax leads to lower tax payments, following on from above.

(d) Lower tax payments lead to higher cash flow from assets, following on from above.

(e) Lower profit after tax leads to a lower share price, following on from above.

If future expected cash flows rise, and future required returns remain the same, then prices will , or remain the ?

(a) Alice buys Alan’s shares using their share brokers and the securities exchange.

(b) Bell buys Bob’s house using his real estate agent.

(c) Carla lends Carlos money at an interest rate of 10% pa for 3 years.

(d) Dora lends money to her bank at 2% pa and the bank lends the funds to David at 5% pa.

(e) Eve buys Ernie’s government bond using their brokers and the securities exchange.

(a) Simple annual rates.

(b) Effective annual rates.

(c) Annualised percentage rates compounding per month

(d) Annualised percentage rates compounding semi-annually

(e) Continuously compounded annual rates.

(a) Arthur has the absolute advantage at picking dates.

(b) Bindi has the absolute advantage at picking coconuts.

(c) Arthur has the comparative advantage at picking dates.

(d) Bindi has the comparative advantage at picking dates.