1For listing on the ASX, a firm must meet a number of criteria. Among them are

Select one:

a.continuous disclosure, either profits test or assets test

b.continuous disclosure, profits test, assets test

c.domiciled in Australia, continuous disclosure, either profits test or assets test

d.domiciled in either Australia or New Zealand, continuous disclosure, profits test, assets test

2A company with an increasing ratio of total assets to equity is _________ dependent on external financing.

Select one:

a.less

b.not at all

c.more

d.rarely

3Before making a rights issue, a company's management must consider several important variables. Which of the following is NOT one of these variables?

Select one:

a.The ability of the company to service the increased equity on issue

b.The costs of alternative funding sources

c.Whether there will be a sufficient take-up rate of the issue

d.The effect on the firm's profits

4Problems associated with calculating an internal rate of return include:

Select one:

a.negative cash flows during the project's lifetime.

b.choosing one project from two or more projects.

c.timing of cash flows.

d.All of the given answers.