1. Which one of the following terms is defined as an underwriting for which the underwriters assume full responsibility for any unsold shares? Initial public offering Best efforts underwriting Firm commitment underwriting Rights offer Private placement
2. The exchange rates in New York are: $1 = AUD 1.2591 and $1 = £0.6047 A dealer is offering a quote: AUD 1 = £0.7668. What is the profit you can earn on $11,515 using triangle arbitrage?
3. Suppose that today's stock price is $53.09. If the required rate on equity is 15.6% and the growth rate is 9.3%, compute the expected dividend (i.e. compute D1).