1) Generally, an initial public offering (IPO) is:

a. an offer to potential investors of ordinary shares to newly list a company on a stock exchange.

b. none of the given answers

c. an offer to potential investors of company debentures to newly list a company on a stock exchange.

d. an offer to potential investors of unsecured notes to newly list a company on a stock exchange.

2) The typical sequence for dividends is:

a. announcement, cum-dividend, dividend payment, ex-dividend.

b. cum-dividend, ex-dividend, announcement, dividend payment.

c. announcement, cum-dividend, ex-dividend, dividend payment.

d. announcement, ex-dividend, cum-dividend, dividend payment

3) Consider the following five statements:

i. The expected return of a portfolio of shares is the weighted average of the expected returns for each share.

ii. All other things being equal, a cum-dividend share price should fall by the amount of a dividend that is paid.

iii. One of the effects of dividend imputation is the removal of 'double taxation' of company profits that are distributed as dividends.

iv. For a shareholder with a marginal tax rate that is lower than the company tax rate, no tax will be payable on the fully franked dividend received, and the excess credit can be applied against other assessable income.

v. In a one-for-nine bonus issue, if the cum-bonus price was $10, then the theoretical ex-bonus price would be $9.

Which of the following is correct?

a) i, ii, iii are true and iv and v are false

b) i, and iii are true and ii, iv and v are false

c) All of the statements are true

d) i and ii are true and iii, iv and v are false

3) Your credit card carries a 9.9% annual percentage rate, compounded daily. What is the effective annual rate, or annual percentage yield (correct to two decimal places)?

a. 0.03%

b. 9.90%

c. 10.41%

d. 18.00%