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Question 286  bill pricing

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?



Question 402  PE ratio, no explanation

Which of the following companies is most suitable for valuation using PE multiples techniques?



Question 495  risk, accounting ratio, no explanation

High risk firms in danger of bankruptcy tend to have:



Question 506  leverage, accounting ratio

A firm has a debt-to-equity ratio of 25%. What is its debt-to-assets ratio?



Question 514  corporate financial decision theory, idiom

The expression 'cash is king' emphasizes the importance of having enough cash to pay your short term debts to avoid bankruptcy. Which business decision is this expression most closely related to?



Question 590  future, market efficiency

Which of the following statements about futures contracts on shares is NOT correct, assuming that markets are efficient?

When an equity future is first negotiated (at t=0):



Question 655  capital budgeting, opportunity cost, sunk cost

The 'time value of money' is most closely related to which of the following concepts?



Question 676  option, option profit, no explanation

Which of the below formulas gives the profit ##(\pi)## from being short a call option? Let the underlying asset price at maturity be ##S_T##, the exercise price be ##X_T## and the option price be ##f_{LC,0}##. Note that ##S_T##, ##X_T## and ##f_{LC,0}## are all positive numbers.



Question 705  utility, risk aversion, utility function

Mr Blue, Miss Red and Mrs Green are people with different utility functions.

Which of the following statements is NOT correct?

Utility curves



Question 858  indirect security, intermediated finance, no explanation

Which of the following transactions involves an ‘indirect security’ using a ‘financial intermediary’?