11. The ASX defines the cam-dividend date as follows:

Cam dividend: Before the ex-dividend date the shares are said to be cam dividend. If you buy shares whilst they are cam dividend you are entitled to the recently announced dividend.

There's a small detail that is unclear in this definition. Suppose that:

Erica buys the shares during the cam-dividend period, then sells them to;

Daisy who buys them on the last cam-dividend day, who then sells them to;

Chad on the ex-dividend date, who then sells them to;

Boris on the record date, who then sells them to;

Alice on the payment date.

Who will receive the dividend?

a.

Alice

b.

Daisy

c.

Erica

d.

Boris

e.

Chad

13.

A company conducts the following capital payout and raising policies. Assume that there are no taxes, no signalling effects and no transaction costs.

Which one of the following statements is NOT correct?

a.

After cash dividend, normally the share price will fall.

b.

2 for 3 rights issue at a subscription price of $7 when the pre-announcement stock price was $8, will increase the number of shares by 66.67% and decrease the share price by 5.11%.

c.

20% stock dividend (not a cash dividend) will increase the number of shares by 20%.

d.

8 for 5 stock split will increase the number of shares by 60% and decrease the share price by 37.5%.

e.

3 for 4 bonus issue will increase the number of shares by 75% and decrease the share price by 42.86%.

14.

If 16% pa is an annual percentage rate (APR) compounding every quarter, which of the following is NOT correct? All percentages are given to 5 decimal places.

a.

Continuously compounded semi-annual rate is 7.84414% per half year.

b.

Continuously compounded quarterly rate is 3.92207% per quarter.

c.

The annual percentage rate (APR) compounding every month is 15.79128%.

d.

Effective quarterly rate is 4.00000% per quarter.

e.

Effective monthly rate is 1.84756% per month.