QFA Investments - Lecture Questions
€100 nominal of a bond is quoted on the stock marketplace at €one zero five.50 plus €1.50
accumulated interest. The price of €107.00 is referred to as which sort of rate?
A Clean
B Marked up
C Dirty
D Spread - ANS-C
Dirty
A bond maturing in 2031 and with a flat yield of four.Seventy one% has exactly 10 years to run
to adulthood. If its cutting-edge price is € eighty five.00, what is the annual gross redemption
yield supplied by the bond currently?
A four.Zero%
B four.Seventy one%
C 5.34%
D 6.Forty seven% - ANS-D
6.47%
1. Identify Flat or Running Yield: 4.Seventy one% (given)
2. Calculate the % of the funding quantity so that it will be won or misplaced at adulthood
Value of Bond at Maturity = € a hundred
Current Price = € eighty five
Capital Growth = € one hundred - € 85 = € 15
Capital Growth (€ 15) as Percentage of Capital Invested
(€ 85) = = zero.176
0.176 as a percentage = zero.176 x 100 = 17.6%
3. Divide Investment Gain % with the aid of No of Years Remaining to Maturity
Investment Gain % = 17.65%
Years to Maturity = 10
17.6% / 10 = 1.Seventy six%
4. Add Flat or Running Yield (Step 1) plus Annual Investment Gain (Step3)
four.Seventy one% + 1.Seventy six% = 6.Forty seven%
A corporation has one million issued ordinary shares, of nominal value of € 1 according to
percentage, which had been issued at € 1.75 according to percentage. If the company's current
,share fee is € three.75 according to percentage, what's the agency's cutting-edge marketplace
capitalisation?
A 1,000,000
B 1,250,000
C 1,750,000
D 3,750,000 - ANS-D
3,750,000
Market Capitalisation = Amount required to buy all everyday shares at cutting-edge proportion
rate
Formula = No of Ordinary Shares x Current Share Price
1. Identify No of Ordinary Shares: a million
2. Identify Current Share Price: € three.75
3. Apply the Formula 1,000,000 X € 3.75 = € 3,750,000
A organisation issued to shareholders one million stocks with a nominal fee of € 1 every at a
price of € 0.Forty every. If the company finally ends up with a deficit, what extra quantity, if any,
can the shareholders be called directly to pay to the agency?
A Nil B
€ four hundred,000
C € six hundred,000
D € one million - ANS-C
€six hundred,000
The regular stocks have a nominal cost of € 1, but were issued to shareholders at € 0.Forty
each. In this case the issued stocks are called 'partially paid' because the shareholders have no
longer paid the whole nominal cost of the stocks issued to them. The shareholders keeping
these shares may be referred to as upon on a land up of the business enterprise to pay up the
balance, that is, they're chargeable for the stability of the nominal value of the shares.
1. Identify the balance owed of the nominal fee of the stocks
Issue Price for every Share: € 0.40
Nominal Value of every share: € 1.00
Balance owed of the Nominal Value of every share
€ 1.00 - € 0.40 = € zero.60
2. Identify the overall variety of shares issued: 1,000,000
3. Calculate overall quantity Shareholders are chargeable for Balance owed of the Nominal
Value of each share (Answer Step 1) MULTIPLIED BY Total No of Shares issued (Answer step
2)
, €zero.60 X 1,000.000 = €600,000
A employer's dividend for this 12 months will value € 1.5m. Its earnings earlier than taxes are €
3.8m and after taxes € three.3m. What is the enterprise's modern-day dividend cover?
A 1.Five
B 2.2
C 2.Fifty three
D three.3 - ANS-B
2.2
Gross Cover = Company's After Tax Profits / The Total Cost of The Dividend
1. Identify Company's After Tax Profits: € three.3m
2. Identify The Total Cost of The Dividend: € 1.5m
3. Apply the Formula € 3.3m / € 1.5m = 2.2
A organization's profits as a consequence of everyday shareholders are € 3.Four million before
tax and € 3.1 million after tax. If the company has 1.5 million regular stocks issued presently and
its modern-day proportion rate is € 26.00, what is the proportion's modern P/E ratio?
A nine.58
B 11.47
C 12.Fifty eight
D 17.33 - ANS-C
12.58
PE Ratio = Current Share Price / Earnings Per Share
1. Calculate the Earnings Per Share (EPS)
EPS = Company's After Tax Profits / The No. Of Shares
Issued Company's After Tax Profits = € 3.1m
The No. Of Shares Issued = 1.5m
Apply the Formula for EPS = € 3.1m / 1.5m = 2.066
2. Identify Current Share Price: € 26.00
three. Apply the Formula for PE Ratio € 26..066 = 12.Fifty eight
A deposit Tracker Bond providing a one hundred% capital assure, is paying a maturity bonus of
10% on maturity in 2021. If the quantity invested turned into €a hundred,000 and assuming NO
exemptions, how an awful lot deposit interest retention tax (DIRT) is deducted?
A €2,000
€100 nominal of a bond is quoted on the stock marketplace at €one zero five.50 plus €1.50
accumulated interest. The price of €107.00 is referred to as which sort of rate?
A Clean
B Marked up
C Dirty
D Spread - ANS-C
Dirty
A bond maturing in 2031 and with a flat yield of four.Seventy one% has exactly 10 years to run
to adulthood. If its cutting-edge price is € eighty five.00, what is the annual gross redemption
yield supplied by the bond currently?
A four.Zero%
B four.Seventy one%
C 5.34%
D 6.Forty seven% - ANS-D
6.47%
1. Identify Flat or Running Yield: 4.Seventy one% (given)
2. Calculate the % of the funding quantity so that it will be won or misplaced at adulthood
Value of Bond at Maturity = € a hundred
Current Price = € eighty five
Capital Growth = € one hundred - € 85 = € 15
Capital Growth (€ 15) as Percentage of Capital Invested
(€ 85) = = zero.176
0.176 as a percentage = zero.176 x 100 = 17.6%
3. Divide Investment Gain % with the aid of No of Years Remaining to Maturity
Investment Gain % = 17.65%
Years to Maturity = 10
17.6% / 10 = 1.Seventy six%
4. Add Flat or Running Yield (Step 1) plus Annual Investment Gain (Step3)
four.Seventy one% + 1.Seventy six% = 6.Forty seven%
A corporation has one million issued ordinary shares, of nominal value of € 1 according to
percentage, which had been issued at € 1.75 according to percentage. If the company's current
,share fee is € three.75 according to percentage, what's the agency's cutting-edge marketplace
capitalisation?
A 1,000,000
B 1,250,000
C 1,750,000
D 3,750,000 - ANS-D
3,750,000
Market Capitalisation = Amount required to buy all everyday shares at cutting-edge proportion
rate
Formula = No of Ordinary Shares x Current Share Price
1. Identify No of Ordinary Shares: a million
2. Identify Current Share Price: € three.75
3. Apply the Formula 1,000,000 X € 3.75 = € 3,750,000
A organisation issued to shareholders one million stocks with a nominal fee of € 1 every at a
price of € 0.Forty every. If the company finally ends up with a deficit, what extra quantity, if any,
can the shareholders be called directly to pay to the agency?
A Nil B
€ four hundred,000
C € six hundred,000
D € one million - ANS-C
€six hundred,000
The regular stocks have a nominal cost of € 1, but were issued to shareholders at € 0.Forty
each. In this case the issued stocks are called 'partially paid' because the shareholders have no
longer paid the whole nominal cost of the stocks issued to them. The shareholders keeping
these shares may be referred to as upon on a land up of the business enterprise to pay up the
balance, that is, they're chargeable for the stability of the nominal value of the shares.
1. Identify the balance owed of the nominal fee of the stocks
Issue Price for every Share: € 0.40
Nominal Value of every share: € 1.00
Balance owed of the Nominal Value of every share
€ 1.00 - € 0.40 = € zero.60
2. Identify the overall variety of shares issued: 1,000,000
3. Calculate overall quantity Shareholders are chargeable for Balance owed of the Nominal
Value of each share (Answer Step 1) MULTIPLIED BY Total No of Shares issued (Answer step
2)
, €zero.60 X 1,000.000 = €600,000
A employer's dividend for this 12 months will value € 1.5m. Its earnings earlier than taxes are €
3.8m and after taxes € three.3m. What is the enterprise's modern-day dividend cover?
A 1.Five
B 2.2
C 2.Fifty three
D three.3 - ANS-B
2.2
Gross Cover = Company's After Tax Profits / The Total Cost of The Dividend
1. Identify Company's After Tax Profits: € three.3m
2. Identify The Total Cost of The Dividend: € 1.5m
3. Apply the Formula € 3.3m / € 1.5m = 2.2
A organization's profits as a consequence of everyday shareholders are € 3.Four million before
tax and € 3.1 million after tax. If the company has 1.5 million regular stocks issued presently and
its modern-day proportion rate is € 26.00, what is the proportion's modern P/E ratio?
A nine.58
B 11.47
C 12.Fifty eight
D 17.33 - ANS-C
12.58
PE Ratio = Current Share Price / Earnings Per Share
1. Calculate the Earnings Per Share (EPS)
EPS = Company's After Tax Profits / The No. Of Shares
Issued Company's After Tax Profits = € 3.1m
The No. Of Shares Issued = 1.5m
Apply the Formula for EPS = € 3.1m / 1.5m = 2.066
2. Identify Current Share Price: € 26.00
three. Apply the Formula for PE Ratio € 26..066 = 12.Fifty eight
A deposit Tracker Bond providing a one hundred% capital assure, is paying a maturity bonus of
10% on maturity in 2021. If the quantity invested turned into €a hundred,000 and assuming NO
exemptions, how an awful lot deposit interest retention tax (DIRT) is deducted?
A €2,000
