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May I ask how do you get the solutions below ? The Options Option A Development cost £2.1 million Option B Development cost £1.5 million...

Parameters tab Interest rate movements <-2.0 -1000000 -0.50% -2.0 to -1.5 -2.0 -0.25% -1.5 to 1.5 -1.5 0.00% 1.5 to 2.0 1.5 0.25% >=2.0 2.0...

A life insurance company has provided the following data on one of its conventional without profits protection products: Business in-force at year...

An economy with a floating exchange rate has a deficit on the current account of its balance of payments. Which policy combination would be most...

Q4 If a demand curve is described as having a price elasticity of minus unity throughout its entire length, this means that the demand curve is: A...

A loss leader may be used as part of which of pricing strategies ? may i know why the answer is full range pricing not predator pricing as...

5 If the government fixed a minimum price of bread above the equilibrium price and there was no further government intervention in the market for...

29 You are given the following data concerning the production costs and the average revenue of a profit maximising firm that produces Good X. The...

21 Which of the following is best suited to reducing the level of structural unemployment? A Lowering the rate of interest. B Raising the rate of...

23 If the central bank has to intervene in the foreign exchange markets to prevent the home currency from appreciating, then its foreign exchange...

Victor Ltd manufactures office equipment. Prepare the following financial statements for the year ended 31 August 2014: • an income statement • a...

16 Discuss the potential advantages and disadvantages of using probability trees for the evaluation of long term projects. May I know if...

A project that has been under review for some time has been modified so that the cash receipts will remain the same, but their timing will be...

How will the components of the return on capital employed ratio be affected if a company charges depreciation too slowly? A Return will be...

A company has issued £0.25 shares at a premium of £0.20 per share. The shareholders have each paid £0.22 for each share that they hold. What is...

A UK taxpayer has disposed of four assets during the year. Which of the following gains could be subject to Capital Gains Tax? A The taxpayer...

6 Why are preference shares normally treated as debt when calculating the gearing ratio? A Preference shares affect the volatility suffered by...

The demand for Good X has a price elasticity of −1. If the government decided to impose a sales tax of £3 per unit on Good X this would: A shift...

If the income elasticity of demand for Good X is 2, a rise in all consumers’ disposable incomes from £50 million to £52 million will increase the...

17 Which one of the following will have a negative impact upon money demand? A a fall in the rate of interest B a rise in the real Gross Domestic...

Diseconomies of scale means: A short run average total cost falls as output rises. B long run average total cost falls as output rises. C long run...

Which of the following statements defines moral hazard in relation to insurance? A Moral hazard describes the fact that people who know that they...

Diminishing marginal utility of income implies that individuals are: A risk lovers. B risk averse. C risk seekers. D risk neutral. May I know why...

May I know why the first answer is inelastic and 2nd answer is elastic ? Third answer is greater and depreciates? [ATTACH] [ATTACH]

24. Which of the following is NOT a problem associated with the active management of fiscal policy? A Time lags. B Uncertainty. C Crowding out. D...

Good Y has a cross elasticity of demand with respect to Good X calculated using the average method of –1. Initially 100 units of Good Y are...

No 2 Kate is an employee of an insurance company in the UK. Kate receives additional benefits such as free medical insurance cover. What effect...

May I know if present value table are needed for this exam to calculate the NPV ? Will we be provided with this table during exam ? Or we need to...

An investment opportunity involves the purchase of a machine for $40,000. The machine will have a useful life of five years, after which time it...

page 13 Can you explain on 3.3 currency swap on the line no 6 why does the meaning of the alternatively......that line? why that could be an...

page11 Can I know why when the price of interest rate future fall then there will be gain in future ? page 6 for bond future right , say the...

Chapter 8 page 4 can you explain on the term margin I actually dont quite understand the example if the price of bond future drop the buyer...

2005 april no4 A bond has a value of £1,000 printed on its face. Its current open market value is £980. Analysts expect the value of the bond...

2012 April No 5 Which of the following best supports the assertion that the payment of a dividend signals confidence on the part of the...

2011 September no 2 2. Hold plc has 20 million shares outstanding priced at £5 a share. A rights issue will allow one share to be purchased for...

2011 April no 2 Which of the following best describes the potential exposure of a member of a limited liability partnership (LLP)? A Members...

2010 Sept no 5 Which of the following accounting concepts can be used to justify carrying a non-current asset at its historical cost less...

April 2010 No 8 S is a holding company that has two subsidiaries, T and U. During the year, S made sales of £1.0m, including sales of £0.2m to...

2010 April no 6 Historically, which of the following best explains why investments in equities have tended to outperform fixed interest...

2014 April no 5 A company has a substantial cash balance for which it has no immediate use. Which of the following would NOT be a valid reason...

2014 September no 3 Can i know why this statement "The taxpayer sold his family home, realising a profit, in order to move to a smaller property."...

2014 April Question 3 Can I get the meaning of subordinated debt ? 2014 April Question 4 Can I get a underlying explanation on this question?...

2013 April no8 why the answer is C? 2013 April no 9 Which of the following best explains why companies must publish their diluted earnings per...

2013 september no 1 May I know the meaning of substantial receipt ? and what is the difference between currency option and a currency future?...

2015 April no4 An investor is considering the purchase of a 2% Treasury Bill that is trading at a discount. Which of the following statements is...

Question 11 2014 April Whats the meaning when the answer states that The shareholders are entitled to all residual profits and so any setback...

2014 April No 8 A parent company owns a 30% holding in an associate. The associate’s profit for the year is £8m. The associate paid a dividend...

Question 6 2014 April A quoted company’s statement of financial position shows equity shares worth £10m, retained earnings of £20m and...

Question 2 2014 April Which of the following best explains the problems arising from information asymmetry? A.Directors do not always have...

Discuss the merits from a bank perspective of using the financial statement of an individual member company seeking a loan rather than a group...

A company ordinary share have a nominal value of 25p. The current market price of a share is 75p. The directors plan a right issue of new shares....

Which of the following investors in the futures and options markets can never find that the contract is a liability at expiry? A the seller of...