# Fight Finance

#### CoursesTagsRandomAllRecentScores

You just signed up for a 30 year interest-only mortgage with monthly payments of $3,000 per month. The interest rate is 6% pa which is not expected to change. How much did you borrow? After 15 years, just after the 180th payment at that time, how much will be owing on the mortgage? The interest rate is still 6% and is not expected to change. Remember that the mortgage is interest-only and that mortgage payments are paid in arrears (at the end of the month). Question 109 credit rating, credit risk Bonds with lower (worse) credit ratings tend to have: A stock is expected to pay the following dividends:  Cash Flows of a Stock Time (yrs) 0 1 2 3 4 ... Dividend ($) 0 6 12 18 20 ...

After year 4, the dividend will grow in perpetuity at 5% pa. The required return of the stock is 10% pa. Both the growth rate and required return are given as effective annual rates.

If all of the dividends since time period zero were deposited into a bank account yielding 8% pa as an effective annual rate, how much money will be in the bank account in 2.5 years (in other words, at t=2.5)?

Which one of the following will decrease net income (NI) but increase cash flow from assets (CFFA) in this year for a tax-paying firm, all else remaining constant?

Remember:

$$NI=(Rev-COGS-FC-Depr-IntExp).(1-t_c )$$ $$CFFA=NI+Depr-CapEx - ΔNWC+IntExp$$

Which of the following statements about effective rates and annualised percentage rates (APR's) is NOT correct?

A residential investment property has an expected nominal total return of 8% pa and nominal capital return of 3% pa.

Inflation is expected to be 2% pa. All rates are given as effective annual rates.

What are the property's expected real total, capital and income returns? The answer choices below are given in the same order.

Question 472  quick ratio, accounting ratio

A firm has current assets totaling $1.5b of which cash is$0.25b and inventories is $0.5b. Current liabilities total$2b of which accounts payable is $1b. What is the firm's quick ratio, also known as the acid test ratio? Which of the below formulas gives the profit $(\pi)$ from being long 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. Mr Blue, Miss Red and Mrs Green are people with different utility functions. Each person has$50 of initial wealth. A coin toss game is offered to each person at a casino where the player can win or lose $50. Each player can flip a coin and if they flip heads, they receive$50. If they flip tails then they will lose \$50. Which of the following statements is NOT correct?

On which date would the stock price increase if the dividend and earnings are higher than expected?