Solve the following questions
FINANCIAL MARKETS REVIS 7) Distinguish between the terms "coin div" and "ex - div" as used in financial markets. JUNE 2009 QUESTION ONE, QUESTION 10 a) Explain the main factors behind the rapid development of capital markets in your country. VE A DECEMBER 2006 QUESTION SIX QUESTION 11 a ) Discuss the role of a capital markets authority in the development of a country's financial markets six QUEST ets QUESTION 12 a) Describe the benefits to a country of integrating its financial markets with those of other country. QUESTION 13 (b) a) Distinguish between primary and secondary securities market. b) "Despite the large investment in the stock exchange and the various government incentives, only a few companies are listed at the stock exchange of the three East Africa Countries", This was the opening remark by the guest speaker in a seminar whose theme was "Developing our capital market." Required: i) The advantage of being listed at the stock exchange. ii) Highlight four factors that may hinder companies from being listed at the stock exchange. QUESTION 14 a) Briefly explain how the "Dow theory " views the movement of the market prices of shares traded on a stock exchange b) Identify and briefly explain the factors that must be taken into account in the design and construction of a market index for shares c) Joseph Kimeu is trying to determine the value of Bidii Ltd's ordinary shares. The earnings growth rate over his planned six-year holding period is estimated to be 10% and the dividend payout ration in 60%. The ending price earnings (P/E) ration is expected to be 20 and the current earning per share are Sh. 4. The required rate of return for this share is 15%. Required Compute the market price of Bidii Lid's ordinary share QUESTION 15 b) Briefly describe the three forms of capital markets efficiency. are familiar with. Highlight four factors that may underlie the low rate of listing of companies in a stock exchange you QUESTION 16 (a) Highlight four advantages and disadvantages to a company of being listed on a stock exchange. (b) In relation to the stock exchange" Section 3 F.Mprohibited subsidy: why Of 6. The WTO is a multilateral trade organization with mem- ber nations from all regions of the world. The majority are developing countries. The WTO agreements permit coun- tries to enter into bilateral or regional trade pacts, or to cre- ate free trade areas and customs unions. Yet a free trade area only has free trade between the countries that belong to it. a. How does the concept of a free trade area, such as the North American Free Trade Agreement (NAFTA) or any other regional FTA, fit into the WTO global framework? Do bilateral pacts or regional free trade areas violate the principles of nondiscrimination and MFN trade? Do they violate the spirit of the WTO, or do they actually contribute to its goals? b. Why do you think many countries have entered into bilateral and regional trade agreements since the inception of the WTO in 1995, thus bypassing the WTO structure?2. Sixty nine percent of adults think that musicians should be allowed to sing potentially offensive 20 songs. You randomly select twenty adults and ask them whether they think musicians should be allowed to sing potentially offensive songs. The random variable represents the number of adults who think musicians should be allowed to sing potentially offensive songs. Find (a) the mean, variance, standard deviation and interpret the results, (b) probability that exactly 15 people think musicians shold be allowed to sing potentially offensive songs, (c) probability that more than 10 people think musicians should be allowed to sing potentially offensive songs, B 1/ 4
