When identifying projects that increase company value, one of the tasks for financial managers is to identify those projects where

Question 1 options:

A)	make the company hit the media headline, no matter whether benefits exceed its costs.
B)	does not need to recruit additional labour.
C)	benefits are likely to exceed the projects costs.
D)	does not require additional borrowing.

Question 2

Which of the following is NOT a feature of a sole proprietorship?

Question 2 options:

A)	Difficult to transfer the ownership.
B)	Limited life.
C)	Subject to marginal tax rates.
D)	Limited liability

Question 3

Since money has a time value, you should

Question 3 options:

A)	delay payments to suppliers and accelerate receipts from customers
B)	check your bank balance every day
C)	pay suppliers as quickly as possible and delay receipts from customers
D)	not actively manage your cash flows

Question 4 (0.5 points)

Which statement is FALSE concerning the effective annual rate (EAR) and time value of money ?

Question 4 options:

A)	The EAR is always greater than the nominal annual interest rate.
B)	An account that pays simple interest will have a lower FV than an account that pays compound interest, if their nominal interest rates are the same AND the maturity is greater than one year.
C)	The greater the compound frequency, the greater the EAR.
D)	Continuous compounding may not be practical in real life, but is widely used in financial modelling.

Question 5

The market capitalization of VicState Co. is $258million. VicState has 41million outstanding common shares. How much is VicState's share price?

Your Answer:

Question 5 options:

Answer

Question 6

Nationwide Bank offers a term deposit paying 3% interest (compound annually). If you need $7,116 at the end of year 7, how much do you need to deposit now?

Your Answer:

Question 6 options:

Answer

Question 7

Sally's assessable income as of 2022/23 is $175,000. She has $609 allowable deduction. How much is Sally's individual income tax payable?

Taxable Income Tax on this income

0 - $18,200 0

$18,201 - $45,000 19c for each $1 over $18,200

$45,001 - $120,000 $5,092 plus 32.5c for each $1 over $45,000

$120,001 - $180,000 $29,467 plus 37c for each $1 over $120,000

$180,001 and over $51,667 plus 45c for each $1 over $180,000

Your Answer:

Question 7 options:

Answer

Question 8

If you save $5,811 now and the account pays 7.8% per annum, compounding monthly, how much is the outstanding balance at the end of year 5?

Your Answer:

Question 8 options:

Answer

Question 9

You want to buy a new car in four years which will cost you $65,000. If you have $47,000 in your bank account now, how much is nominal interest rate (compounded annually) p.a. to reach your goal?

Hint: if your answer is 10.14%, please input as 10.14, rather than 0.1014, or 10.14%, or 10.14 per cent.

Your Answer:

Question 9 options:

Answer

Question 10

What is the future value of the mixed cash flow pattern as below, at the end of year 8, assuming a 5.6% interest rate (compounded annually)?

End of year Cash Flow

3 1,679

5 2,986

8 3,825

Your Answer:

Question 10 options:

Answer