Fight Finance

(a) Only (i) is true.

(b) Only (ii) is true.

(c) Only (iii) is true.

(d) All statements (i), (ii) and (iii) are true.

(e) Only statements (i) and (iii) are true.

(a) The project should be rejected.

(b) The project's IRR is more than its required return.

(c) The project's IRR is less than its required return.

(d) The project's IRR is equal to its required return.

(e) The project will never pay itself off, assuming that the discount rate is positive.

(a) Expected future total return of the market price of equity.

(b) Expected future total return of the book price of equity.

(c) Actual historical total return on the market price of equity.

(d) Actual historical total return on the book price of equity.

(e) Actual historical return on equity (ROE) defined as (Net Income / Owners Equity).

In a takeover deal where the offer is 100% scrip (shares), the merged firm's number of shares will be equal to the sum of the acquirer and target firms' original number of shares. or ?

(a) Extrapolation of past trends to estimate future revenues or costs.

(b) Using a constant or trending 'percent of sales' method to forecast future costs.

(c) Use futures (derivative) prices, if available, to forecast prices which helps calculate revenues.

(d) Use forecast GDP growth rates published by the statistics bureau to estimate future revenue growth.

(e) Assume that markets are efficient and use the random walk hypothesis to substitute a random value for revenue.

(a) AUD 0.2 million.

(b) AUD 0.8 million

(c) AUD 1 million

(d) AUD 1.25 million.

(e) AUD 1.8 million.

You owe money. Are you a or a ?

(a) 0% pa

(b) 3.5% pa

(c) 4% pa

(d) 4.5% pa

(e) 5% pa

(a) ##\pi_{SP}=-max⁡(S_T-X_T,0) - f_{LP,0}##

(b) ##\pi_{SP}=-max⁡(X_T-S_T,0) + f_{LP,0}##

(c) ##\pi_{SP}=max⁡(S_T-X_T,0) - f_{LP,0}##

(d) ##\pi_{SP}=max⁡(X_T-S_T,0) + f_{LP,0}##

(e) ##\pi_{SP}=max(X_T-S_T,0) - f_{LP,0}##

(a) Dollars ($).

(b) Dollars per day ($/day).

(c) Dollars per day squared ($/day^2).

(d) Dollars squared per day ($^2/day).

(e) Dollars squared per day squared ($^2/day^2).