QUESTION 15 . An example of a liquidity ratio for a company is: a fixed asset turnover. current ratio. earnings per share. share price to net tangible assets.

QUESTION 14

Which of the following is an example of an unsystematic risk exposure for a company?

A change in interest rates that are economic wide

A change in foreign exchange rates

Political instability in a country

A plane crash which kills the CEO

QUESTION 13

If a company raises equity funds by issuing shares to a selected number of institutional investors, this is known as:

A share appointment.

A placement.

A share rights issue.

Share transfer.

QUESTION 12

When a company's project results in a return and profit after interest and taxes which exceeds the cost of its debt financing:

both the debt holders and shareholders can share in the profits.

only the shareholders share in the profits.

the interest payments to the debt holders may increase.

its cost of capital increases.

QUESTION 11

Purchasing existing Tassal Ltd shares from another investor is an example of:

A secondary market transaction

Companies raising finance from another financial intermediary

A wholesale market transaction

A primary market transaction

QUESTION 10

If a limited liability company has just issued shares with an issue price of $36, but are currently paid to $24, what is the total maximum amount that a shareholder can lose per share?

$36

$24

$12

Cannot be determined from the information in the question