Reference no: EM133172701

Questions -

Q1. The stock exchange provides a market for trading managed products. Which of the following are examples of managed products on the ASX?

Initial Public Offering

Private Equity

Real Estate Investment Trusts (REITs)

All of the given answers are correct

Q2. An investment decision differs from a financing decision in that:

An investment decision first determines what assets the firm will invest in, while a financing decision considers if the existing investments should be refinanced

A financing decision first determines what financial assets the firm will invest in, while an investment decision considers how the funds will be invested

An investment decision first determines what assets the firm will invest in, while a financing decision considers how the investments under consideration are to be funded

Investment decisions relate to assets that the firm has invested in, while financing decisions relate to the firm's financial assets

Q3. What should be the price of a share of a share that just paid $3.50 in dividends in the last financial year, its dividend growth rate is 4%, and the required rate of return is 11%?

$50.00

$52.00

$60.56

$87.50

Q4. Factoring involves:

A business selling its accounts receivable

Alan to a business secured against its accounts receivable

Renting an asset as an alternative to buying the asset

Issuing short term discount securities to manage liquidity

Q5. When an owner of an asset grants another party the right to use the asset for an agreed period of time in return for periodic payments this is called:

Leasing

Floor plan finance

Accounts receivable financing

Factoring