$ \quad $$ \quad $$ \quad $$ \quad $$ \quad $$ \quad $$ \quad $$\text { ABC Limited: Order book }$ $\begin{array}{l} \begin{array}{|c|c|r|r|} \hline \begin{array}{c} \text { Price } \\ \text { (to buy) } \end{array} & \begin{array}{c} \text { Quantity } \\ \text { (to buy) } \end{array} & \begin{array}{c} \text { Price } \\ \text { (to sell) } \end{array} & \begin{array}{c} \text { Quantity } \\ \text { (to sell) } \end{array} \\ \hline \$ 1.00 & 50000 & \$ 1.10 & 25000 \\ \hline \$ 0.90 & 25000 & \$ 1.20 & 50000 \\ \hline \$ 0.80 & 50000 & \$ 1.30 & 100000 \\ \hline \end{array} \end{array}$ -Given the order book for ABC Limited,suppose a market order arrives to buy 80,000 shares.At what price will the trade occur?

A) $\$ 0.80$ B) $\$ 1.00$ C) $\$ 1.10$ D) $\$ 1.30$ A) $\$ 0.80$ B) $\$ 1.00$ C) $\$ 1.10$ D) $\$ 1.30$

$ \quad $$ \quad $$ \quad $$ \quad $$ \quad $$ \quad $$ \quad $$\text { ABC Limited: Order book }$ $\begin{array}{l} \begin{array}{|c|c|r|r|} \hline \begin{array}{c} \text { Price } \\ \text { (to buy) } \end{array} & \begin{array}{c} \text { Quantity } \\ \text { (to buy) } \end{array} & \begin{array}{c} \text { Price } \\ \text { (to sell) } \end{array} & \begin{array}{c} \text { Quantity } \\ \text { (to sell) } \end{array} \\ \hline \$ 1.00 & 50000 & \$ 1.10 & 25000 \\ \hline \$ 0.90 & 25000 & \$ 1.20 & 50000 \\ \hline \$ 0.80 & 50000 & \$ 1.30 & 100000 \\ \hline \end{array} \end{array}$ -Given the order book for ABC limited,suppose a market order arrives to buy 100 000 shares.What is the cost of the 100 000 shares to the trader?

A) $\$ 120000$ B) $\$ 90000$ C) $\$ 80000$ D) $\$ 130000$ A) $\$ 120000$ B) $\$ 90000$ C) $\$ 80000$ D) $\$ 130000$

$\begin{array}{|c|c|c|} \hline \text { Day } & \begin{array}{c} \text { BHP price } \\ \text { (end of day) } \end{array} & \begin{array}{c} \text { ANZ price } \\ \text { (end of day) } \end{array} \\ \hline \text { Monday } & \$ 18.20 & \$ 24.50 \\ \hline \text { Tuesday } & \$ 19.00 & \$ 24.80 \\ \hline \text { Wednesday } & \$ 17.80 & \$ 25.90 \\ \hline \text { Thursday } & \$ 16.55 & \$ 26.00 \\ \hline \end{array}$ -Consider the end of day prices for ANZ and BHP for Monday through Thursday.Suppose an investor short sells BHP over this period,calculate their continuously compounded return to the investor.

A) $-9.97 \%$ B) $-9.95 \%$ C) $9.50 \%$ D) $9.97 \%$ A) $-9.97 \%$ B) $-9.95 \%$ C) $9.50 \%$ D) $9.97 \%$

Exam 2: Australian Financial Markets

Company ABC has a share price of $10 and has 400 000 shares on issue.If the company makes a bonus issue of 100 000 additional shares,calculate the ex-bonus price of shares in ABC.

(Multiple Choice)

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Question 21

Company XYZ initially has a share price of $1.The company makes a rights issue on the basis of 1 for every 1 held,with a subscription price of $0.50.Calculate the ex-rights price of the XYZ shares.

(Multiple Choice)

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Question 22

Which of the following does not affect(s)the performance on an index?

(Multiple Choice)

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Question 23

Assuming an imputation tax system with a corporate tax rate of 30%,what is the after tax dividend for an investor with a personal tax rate of 47%,if the fully franked dividend is $14 000?

(Multiple Choice)

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(72)

Question 24

Bills of exchange and debentures are both examples of securities traded on the Australian bond markets.

(True/False)

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Question 25

The Integrated Trading System (ITS)system which permits automated order processing is used by brokers to also report regulatory requirements.

(True/False)

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(87)

Question 26

$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\text { ABC Limited: Order book }$ Price (to buy) Quantity (to buy) Price (to sell) Quantity (to sell) \ 1.00 50000 \ 1.10 25000 \ 0.90 25000 \ 1.20 50000 \ 0.80 50000 \ 1.30 100000 -Given the order book for ABC Limited,suppose a market order arrives to buy 80,000 shares.At what price will the trade occur?

(Multiple Choice)

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Question 27

Assume an investor buys an apartment for investment purpose for $400,000.The purchase is financed with 50,000 of the investor's money and the rest,$350,000,is borrowed at a rate of 8%.Suppose the apartment earns rental income of $10,000 and the investor earns $100,000 p.a.and the marginal tax rate is 37%.Calculate the loss on the property.

(Multiple Choice)

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(95)

Question 28

$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\text { ABC Limited: Order book }$ Price (to buy) Quantity (to buy) Price (to sell) Quantity (to sell) \ 1.00 50000 \ 1.10 25000 \ 0.90 25000 \ 1.20 50000 \ 0.80 50000 \ 1.30 100000 -Given the order book for ABC limited,suppose a market order arrives to buy 100 000 shares.What is the cost of the 100 000 shares to the trader?

(Multiple Choice)

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(90)

Question 29

An investor wants to calculate the continuously compounded return for month t for a company.If the share price of the company was $4.50 at the start of month t and $7.25 at the end of month t,then the month t continuously compounded return is:

(Multiple Choice)

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Question 30

Assuming an imputation tax system with a corporate tax rate of 28%,what is the net personal tax for an investor with a personal tax rate of 45%,if the fully franked dividend is $14 000?

(Multiple Choice)

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(86)

Question 31

Which index weighting systems are most share indices using?

(Multiple Choice)

4.9/5

(90)

Question 32

An investor wants to calculate the continuously compounded return for month t for a company.If the share price of the company was $4.50 at the start of month t and $7.25 at the end of month t and the company paid a dividend of $0.80 in month t,then the month t return is:

(Multiple Choice)

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(70)

Question 33

Company DEF initially has a share price of $8.The company makes a rights issue on the basis of one for every five held,with a subscription price of $5.00.Calculate the ex-rights price of the DEF shares.

(Multiple Choice)

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Question 34

Hendra Heights Ltd has 28 000 000 shares on issue.The company makes a rights issue on the basis of one share for every seven already held.The subscription price for a new share is $4.20 per share.If all rights are taken up such that the issue is fully subscribed,and the current market value of the company's shares is $7.50,what is the amount raised by the company through the rights issue?

(Multiple Choice)

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Question 35

Assuming an imputation tax system with a corporate tax rate of 30%,what is the net personal tax for an investor with a personal tax rate of 30%,if the fully franked dividend is $10 000?

(Multiple Choice)

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(72)

Question 36

Trading on the Australian stock exchange is conducted on the CHESS system.

(True/False)

4.9/5

(80)

Question 37

Day BHP price (end of day) ANZ price (end of day) Monday \ 18.20 \ 24.50 Tuesday \ 19.00 \ 24.80 Wednesday \ 17.80 \ 25.90 Thursday \ 16.55 \ 26.00 -Consider the end of day prices for ANZ and BHP for Monday through Thursday.Suppose an investor short sells BHP over this period,calculate their continuously compounded return to the investor.

(Multiple Choice)

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(73)

Question 38

The culmination of the state stock exchanges eventuated in 1962.

(True/False)

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Question 39

Assuming an imputation tax system with a corporate tax rate of 28%,what is the after tax dividend for an investor with a personal tax rate of 15%,if the fully franked dividend is $21 000?

(Multiple Choice)

5.0/5

(74)

Question 40

Company ABC has a share price of $10 and has 400 000 shares on issue.If the company makes a bonus issue of 100 000 additional shares,calculate the ex-bonus price of shares in ABC.

Company XYZ initially has a share price of $1.The company makes a rights issue on the basis of 1 for every 1 held,with a subscription price of $0.50.Calculate the ex-rights price of the XYZ shares.

Which of the following does not affect(s)the performance on an index?

Assuming an imputation tax system with a corporate tax rate of 30%,what is the after tax dividend for an investor with a personal tax rate of 47%,if the fully franked dividend is $14 000?

Bills of exchange and debentures are both examples of securities traded on the Australian bond markets.

The Integrated Trading System (ITS)system which permits automated order processing is used by brokers to also report regulatory requirements.

An investor wants to calculate the continuously compounded return for month t for a company.If the share price of the company was $4.50 at the start of month t and $7.25 at the end of month t,then the month t continuously compounded return is:

Assuming an imputation tax system with a corporate tax rate of 28%,what is the net personal tax for an investor with a personal tax rate of 45%,if the fully franked dividend is $14 000?

Which index weighting systems are most share indices using?

An investor wants to calculate the continuously compounded return for month t for a company.If the share price of the company was $4.50 at the start of month t and $7.25 at the end of month t and the company paid a dividend of $0.80 in month t,then the month t return is:

Company DEF initially has a share price of $8.The company makes a rights issue on the basis of one for every five held,with a subscription price of $5.00.Calculate the ex-rights price of the DEF shares.

Assuming an imputation tax system with a corporate tax rate of 30%,what is the net personal tax for an investor with a personal tax rate of 30%,if the fully franked dividend is $10 000?

Trading on the Australian stock exchange is conducted on the CHESS system.

The culmination of the state stock exchanges eventuated in 1962.

Assuming an imputation tax system with a corporate tax rate of 28%,what is the after tax dividend for an investor with a personal tax rate of 15%,if the fully franked dividend is $21 000?

The Investment Decision

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Financial Management: Derivative Instruments and Information Sources

Money Market Securities

Bonds

Investor Preferences and Portfolio Concepts

Risky Asset Pricing Models and the Capm

Alternative Risky Asset Pricing Models

Concepts and Applications of Market Efficiency

Equity Valuation Models

Macro- and Industry Analysis of Share Markets

Qualitative Stock Selection

Quantitative Company Analysis

Futures and Forward Contracts

Option Contracts

Advanced Issues in Options

Alternative Investments

Portfolio Management

Performance Evaluation of Managed Funds

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