A stock pays semi-annual dividends. It just paid a dividend of $10. The growth rate in the dividend is 1% every 6 months, given as an effective **6 month** rate. You estimate that the stock's required return is 21% pa, as an effective **annual** rate.

Using the dividend discount model, what will be the share price?

A wholesale store offers credit to its customers. Customers are given 60 days to pay for their goods, but if they pay immediately they will get a 1.5% discount.

What is the effective interest rate implicit in the discount being offered? Assume 365 days in a year and that all customers pay either immediately or the 60th day. All of the below answer choices are given as effective annual interest rates.

A firm wishes to raise $**50** million now. They will issue **5**% pa semi-annual coupon bonds that will mature in **3** years and have a face value of $**100** each. Bond yields are **6**% pa, given as an APR compounding every 6 months, and the yield curve is flat.

How many bonds should the firm issue?

Calculate Australia’s GDP over the 2016 calendar year using the below table:

Australian Gross Domestic Product Components |
||||

A$ billion, 2016 Calendar Year from 1 Jan 2016 to 31 Dec 2016 inclusive | ||||

Consumption | Investment | Government spending | Exports | Imports |

971 | 421 | 320 | 328 | 344 |

Source: ABS 5206.0 Australian National Accounts: National Income, Expenditure and Product. Table 3. Expenditure on Gross Domestic Product (GDP), Current prices.

Australia’s GDP was:

Which one of the following businesses is likely to be a **public** company in Australia, judging by its name?

A New Zealand lady wants to calculate how many New Zealand Dollars (NZD) she needs to buy a 1 million Australian dollar (AUD) house in Sydney, Australia. The exchange rate is **0.69** USD per NZD and **0.72** USD per AUD. What is the AUD 1 million equivalent to in NZD?