You want to buy an apartment priced at $300,000. You have saved a deposit of $30,000. The bank has agreed to lend you the $270,000 as a fully amortising loan with a term of 25 years. The interest rate is 12% pa and is not expected to change.
What will be your monthly payments? Remember that mortgage loan payments are paid in arrears (at the end of the month).
Stock A has a beta of 0.5 and stock B has a beta of 1. Which statement is NOT correct?
The following is the Dividend Discount Model used to price stocks:
### p_0=\frac{d_1}{r-g} ###
Which of the following statements about the Dividend Discount Model is NOT correct?
A share was bought for $4 and paid an dividend of $0.50 one year later (at t=1 year).
Just after the dividend was paid, the share price fell to $3.50 (at t=1 year). What were the total return, capital return and income returns given as effective annual rates? The answer choices are given in the same order:
##r_\text{total}##, ##r_\text{capital}##, ## r_\text{income}##
The perpetuity with growth formula, also known as the dividend discount model (DDM) or Gordon growth model, is appropriate for valuing a company's shares. ##P_0## is the current share price, ##C_1## is next year's expected dividend, ##r## is the total required return and ##g## is the expected growth rate of the dividend.
###P_0=\dfrac{C_1}{r-g}###
The below graph shows the expected future price path of the company's shares. Which of the following statements about the graph is NOT correct?
Which of the following interest rate quotes is NOT equivalent to a 10% effective annual rate of return? Assume that each year has 12 months, each month has 30 days, each day has 24 hours, each hour has 60 minutes and each minute has 60 seconds. APR stands for Annualised Percentage Rate.
Below is the Australian central bank’s cash rate.
From 2011 to 2017 the Australian central bank has implemented:
The below graph from the RBA shows the phase-in of the Basel 3 minimum regulatory capital requirements under the Basel Committee on Banking Supervision (BCBS) on the left panel and in Australia under the Australian Prudential Regulatory Authority (APRA) on the right panel.
Which of the following statements about the Basel 3 minimum regulatory capital requirements as at 2019 is NOT correct? All minimum amounts exclude the 2.5% counter-cyclical buffer.
The Basel 3 minimum regulatory capital requirement as a percent of Risk Weighted Assets (RWA) is:
On which date would the stock price increase if the dividend and earnings are higher than expected?