Question 2
In an efficient market the purchase of financial assets would represent a zero NPV
project.
Answer
True (This is the correct answer)
False
Question 3 shares
A non-redeemable preference shar
Question 2
The difference between a nominal interest rate and an effective
interest rate is expected inflation.
Answer
True
False
Question 3
What is the Present Value of an amount of $4,000 to be rece
EFN 406
Quiz 9
XYZ Corporation has just paid a dividend of 56 cents per share. The current
market price of the share is $15 and shareholders require a return of 10 % pa.
What is the annual growth rate
Quiz 9
Polycorp has a debt equity ratio of 0.67. What is the correct debt ratio D/V that should be
used in the WACC formula?
WACC = ke x E/V + kd x (1-t) x D/V
Provide an answer as a decimal accurate
Review Test Submission: Module 01 Quiz
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Anh Tung Vo
Managerial Finance
Module 01 Quiz
26/02/15 4:35
Question 1
0.5 out of 0.5 points
In general, a downward-sloping term structure implies that investors expect future shortterm interest rates to:
Selected Answer:
decrease.
Answers:
none of the given
Question 1
2 out of 2 points
Given the information in the table below calculate the standard deviation of a portfolio
combining Asset A and Asset B in the proportions of 40% and 60%, respectively. A
Question 1
0.5 out of 0.5 points
When working out the cash flows to calculate an NPV or an IRR the project's after tax
interest expense should be subtracted from the cash flows for:
Selected
Answer:
Question 1
0.5 out of 0.5 points
Descartes's rule of sign states that there can be as many positive solutions to IRR as there
are changes in sign of the cash flows of the project.
Selected Answer:
An
EFN406: MANAGERIAL FINANCE
Assignment: Part B, Capital Budgeting
Solution
2016 1
_
_
Answer the two problems below (P1 and P2). Five marks each. Part marks will be allocated, but if
you have the incor
Question 1
0 out of 1.5 points
Calculate the cost of preference capital (kp) for a non-redeemable preference share which
has the following:
Price = $15 and a Preference dividend of $1.9 paid every si
Question 1
0 out of 0 points
This online quiz is an individual assessment. Your answers should be your own work and
should not be the result of work done by others.
Selected
Answer:
I UNDERSTAND and
Question 1
1.5 out of 1.5 points
Calculate the AE given a project with an outlay of -2000 and cash flows of 1500 per
year for 5 years. The discount rate is 0.12. The rate is given as a decimal (eg .1
Question 1
0 out of 0 points
This online quiz is an individual assessment. Your answers should be your own work and
should not be the result of work done by others.
Selected
Answer:
I UNDERSTAND and
EFN 406 quiz 9 Semester 2, 2016
Question 2
A Limited has just issued a bond with face value of $1000 and a coupon rate of 8%. If the
bond has a life of 15 years, pays annual coupons and the YTM is 7.5
Finance Quiz 8
Sem 2, 2016
Question 1- The annual nominal rate is j m = 0.12pa. What is the effective annual rate
as a percentage to two decimal places? The number of compounding periods is 6.
Enter y
Question 1
0 out of 0.5 points
Using discounted payback. A conventional project that has a discount payback
period less than its useful life cannot have a negative NPV.
Selected Answer:
False
Answers:
Question 1
0 out of 1 points
What is the beta of an asset with an expected return of 16%, if the risk-free rate of
interest is 6% and the expected market portfolio risk premium is 6%? Accurate to
two
Question 1
0 out of 0 points
This online quiz is an individual assessment. Your answers should be your own work
and should not be the result of work done by others.
Selected
Answer:
I UNDERSTAND and A
Question 1
0 out of 0 points
This online quiz is an individual assessment. Your answers
should be your own work and should not be the result of work
done by others.
Selected
Answer:
Answers:
I UNDERS
Question 1
0.5 out of 0.5 points
In an efficient market the current price is:
Selected Answer:
c.
neither too low nor too high
Answers:
a.
none of the given answers
b.
always higher
c.
neither too low
Question 1
1.5 out of 1.5 points
Given the data below, calculate the net present value of an infinite chain of
replacement using the equivalent annual value method. Assume the cost of capital
is 11% p
Question 1
0.5 out of 0.5 points
When using the CAPM to estimate the cost of equity for evaluation of investment
proposals, the appropriate substitute for the risk free rate of interest is:
Selected
A
Question 1
0.5 out of 0.5 points
The writer of an option is the:
Selected Answer:
e.
initial seller of the option
Answers:
a.
both buyer of the put option and buyer of the call option
b.
taker of a pu
Question 1
1 out of 1 points
Benefit-cost ratio is calculated by:
Selected
Answer:
Answers:
d.
dividing the present value of future net cash flows by the initial
outlay.
a.
dividing the outlay by the
Queensland University of Technology
Faculty of Business
EFN505: FINANCIAL RISK MANAGEMENT
MID EXAM
August 2012
Time Allowed: 100 Minutes (+10 minutes reading).
Total Marks: 50 OUT OF 100
THIS IS A CLO
Queensland University of Technology
Faculty of Business
EFN505: FINANCIAL RISK MANAGEMENT
MID EXAM
N.B. THIS IS A SAMPLE COPY ONLY
September 2012
Time Allowed: 2 hours (there is no reading time alloca