1. Company A issues a bond with a face value of 100, a redemption date in 20 years' time and a nominal interest rate of 8%.

Company A manages to sell the bond for a price of 90.

What is the yield to redemption for this bond?

Select one:

a. 9.42% b. 8.46% c. 8.37% d. 8.32%

2. Scylace plc's shares are trading on a stock exchange with a share price of 35p.

The nominal value of each share is 5p and the company's market capitalisation is 4.8 billion.

Scylace has announced an annual dividend of 2p per share. It does not intend to pay an interim dividend this year or at any time in the future - it only pays a dividend once per year.

Next year, Scylace's directorsfirmly expect to pay an annual dividend of 2.05p per share and the percentage dividend growth in future years is not expected to change in the foreseeable future.

What is Scylace's Cost of Equity Capital?

Select one:

a. 5.71% b. 8.21% c. 40% d. 42.5%

3. South Sea Bubble plc has 2 billion ordinary shares in issue. The current market price of its ordinary shares is 575p for each share.

Its most recent reported annual post-tax earnings were 225 million, from which it paid a preference dividend of 5 million.

Calculate the price-earnings ratio for South Sea Bubble plc.

Select one:

a. 2.56 b. 25.56 c. 52.27 d. 522.73