Fight Finance

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keithphw$6,001.61
Zin$1,502.43
Carolll$1,433.33
Visitor$1,268.61
cuiting$1,249.70
Jade$1,145.80
Visitor$1,108.33
Skywalke...$1,070.00
Visitor$1,051.28
mm11$1,050.33
ninalee$1,039.70
Visitor$1,024.70
Visitor$1,005.61
Visitor$966.00
victor$934.70
zy$919.70
Doris$889.70
Visitor$840.00
Yuan$823.33
Emma Lu$810.00
 

Question 5  DDM

For a price of $6, Carlos will sell you a share which will pay a dividend of $1 in one year and every year after that forever. The required return of the stock is 10% pa.

Would you like to his share or politely ?


Question 82  portfolio return

Portfolio Details
Stock Expected
return
Standard
deviation
Correlation Dollars
invested
A 0.1 0.4 0.5 60
B 0.2 0.6 140
 

What is the expected return of the above portfolio?



Question 114  WACC, capital structure, risk

A firm's WACC before tax would decrease due to:



Question 251  NPV

You have $100,000 in the bank. The bank pays interest at 10% pa, given as an effective annual rate.

You wish to consume an equal amount now (t=0) and in one year (t=1) and have nothing left in the bank at the end.

How much can you consume at each time?



Question 387  real option, option

One of the reasons why firms may not begin projects with relatively small positive net present values (NPV's) is because they wish to maximise the value of their:



Question 538  bond pricing, income and capital returns, no explanation

Risk-free government bonds that have coupon rates greater than their yields:



Question 581  APR, effective rate, effective rate conversion

A home loan company advertises an interest rate of 6% pa, payable monthly. Which of the following statements about the interest rate is NOT correct? All rates are given to four decimal places.



Question 602  foreign exchange rate, American and European terms

Chinese people usually quote the Chinese Yuan or Renminbi in RMB per 1 USD. For example, in October 2015 the Chinese Renminbi was 6.35 RMB per USD. Is this an or terms quote?


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 686  future

Which of the following statements about futures is NOT correct?




Copyright © 2014 Keith Woodward