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Supplementary objective test questions

41 An investor, who bases all his investment decisions on information he
has gathered from published statements and comments on company
plans and performance, is acting as if he believed that the maximum level
of efficiency of the capital market is:

A Strong

B Semi-strong

C Weak

D Zero

42 Asset-based business valuations using net realisable values are useful in
which of the following situations?

A When the company is being bought for the earnings/cash flow that all of its
assets can produce in the future

B For asset stripping

C To identify a maximum price in a takeover

D When the company has a highly-skilled workforce

43 A company has just paid an ordinary share dividend of 32.0 cents and is
expected to pay a dividend of 33.6 cents in one year’s time. The company has a
cost of equity of 13%.

What is the market price of the company’s shares to the nearest cent on
an ex dividend basis?

A $3.20

B $4.41

C $2.59

D $4.20

403