Fight Finance

(a) Income return of the stock.

(b) Capital return of the stock.

(c) Total return of the stock.

(d) Dividend yield of the stock.

(e) Price-earnings ratio of the stock.

(a) The firm issuing more debt and using the proceeds to repurchase stock.

(b) The firm issuing more equity and using the proceeds to pay off debt holders.

(c) The firm's industry becoming more systematically risky, for example if it was a mining company whose performance became more sensitive to countries' GDP growth, so the correlation of the firm's returns with the market was higher.

(d) The firm's industry becoming less systematically risky, for example if it was a child care centre and the government announced higher subsidies for parents using child care centres, so the correlation of the firm's returns with the market was lower.

(e) None of the above.

(a) Senior bonds

(b) Junior bonds

(c) Bank accepted bills

(d) Promissory notes

(e) Bank loans

(a) $89.5717

(b) $89.6632

(c) $90.5598

(d) $93.3393

(e) $100.0000

(a) 0.9686 USD per AUD

(b) 0.9686 AUD per USD

(c) 1.0324 USD per AUD

(d) 1.0324 AUD per USD

(e) 1.0324 AUD per EUR

(a) 64%

(b) 40%

(c) 37.5%

(d) 25%

(e) 6.25%

(a) Prices, ##P_1##.

(b) Gross discrete returns per annum, ##r_{\text{gdr 0 }\rightarrow \text{ 1}} = \dfrac{P_1}{P_0} ##.

(c) Effective annual returns per annum also known as net discrete returns, ##r_{\text{eff 0 }\rightarrow \text{ 1}} = \dfrac{P_1 - P_0}{P_0} = \dfrac{P_1}{P_0}-1##.

(d) Continuously compounded returns per annum, ##r_{\text{cc 0 }\rightarrow \text{ 1}} = \ln \left( \dfrac{P_1}{P_0} \right)##.

(e) Annualised percentage rates compounding per month, ##r_{\text{apr comp monthly 0 }\rightarrow \text{ 1 mth}} = \left( \dfrac{P_1 - P_0}{P_0} \right) \times 12##.

(a) Americans

(b) Chinese

(c) Japanese

(d) Germans

(e) Norwegians

(a) $20,000

(b) $28,000

(c) $35,000

(d) $40,000

(e) $50,000

(a) Coupon-paying, with regular coupon payments prior to maturity.

(b) Discount securities, so price is less than face value if interest rate is positive.

(c) Unsecured.

(d) Short term, their original maturity is usually less than one year.

(e) Priced using simple interest rates.