42. What term is used for the present value of the future cash flows after netting out the initial cash flow.

a.

Real value

b.

Net discounted value

c.

Net present value

d.

Discounted present value

44. An investor does not have the cash to buy shares in a 5 for 1 rights issue. The theoretical value of the share ex-rights is 3.20, and the subscription price is 3. What is the value of a right on one share?

a.

100p

b.

20p

c.

15p

d.

4p

5. Some positive factors for the IPO.

a.

Allows the company to grow and further develop

b.

Loss of control

c.

Gain in equity capital with no interest or debt repayment

d.

Reporting and not regulations