Reference no: EM132623880

Problem 1: Under Corporations Law as amended in 1998, companies now issue shares at:

Option 1: any price they determine is appropriate in the market

Option 2: the price determined by the ASX as the appropriate issue price for the shares

Option 3: the ASIC-specified level of price relative to a moving average of sales over the preceding 6 months

Option 4: the average price at which shares have been issued over the last five years

Problem 2: Which of the following are derivative financial instruments?

Option 1: Futures contracts

Option 2: Interest rate swaps

Option 3: Foreign currency swaps

Option 4: All of the given answers are correct.

Problem 3: Holders of ordinary shares:

Option 1: are assured of dividends each year

Option 2: may not receive a cash dividend each year but the dividend will accrue and eventually be paid

Option 3: will always receive a dividend if the company has made a profit in that financial year

Option 4: receive dividends at the discretion of the directors