Question 1 (Video 1.C.) Assume that the Warehouse Group just paid 22 cents cash dividend per share and the dividend is fully imputed. Choose all correct statement(s) below: A New Zealand shareholder with a 10.5\% marginal tax rate is likely to claim more imputation credit per share than a New Zealand shareholder with a 33% marginal tax rate. The total dividend due per share for an individual shareholder from this cash dividend per share is 22 cents times his or her marginal tax rate. Foreign shareholders (who are not NZ tax residents) can use these imputation credits. Foreign shareholders (who are not NZ tax residents) cannot use these imputation credits. Question 2 (Video 1.D.) Which type of firms faces the least agency problem. A company with one owner; the owner is also the only manager and employee in the company. A company with one owner; the owner hires 10 employees to work in this company. A family owned company with 5000 employees and professional CEO and CFO hired from outside of the family. A large public company with over one million shareholders. Which of the following activities is (are) consistent with the stakeholder view. Choose all correct answer(s). A business chases short-term profits and focuses on shareholder value. A company provides a paid five-week training programme for minorities who are looking to build a career in technology but may not have a technical background. A business pledges to net-zero emission targets even though doing so reduces its profits over the next three years. A fund manager excludes stocks of firms with substandard environmental practice even these stocks are expected to generate high abnormal returns. Question 4 (Video 1.E.) Which of the following action(s) make(s) capital markets more efficient? Choose all correct answer(s). Fund managers study patent applications filed by semiconductor manufacturers to identify good investment opportunities and purchase their stocks before these companies announce good news. Fund managers study companies' audit reports to identify possible financial frauds and short sell stocks of companies that are highly likely to be fraudulent. After 2008, financial regulators introduced new rules to limit the amount of capital that investment banks can use to trade securities. Dividend imputation credits attached to New Zealand shares can only be used by New Zealand tax residents. Question 5 (Video 1.F) Which of the following portfolios has/have generated positive CAPM alphas? Choose all correct answer(s). (refer to Figure 4 and Figure 5 in the lecture notes). Small stocks (portfolio 1 in Figure 4). Big stocks (portfolio 10 in Figure 4) Growth stocks (portfolio 1 in Figure 5). Value stocks (portfolio 10 in Figure 5)
