Stuff

Question 1

A 10-year gilt can be stripped into how many separate securities?

Answer 1

21

(10 years x 2 half-yearly interest payments) + redemption payment

Question 2

Financial ratios used as conditions or restrictive covenants on corporate bonds (there are 2)?

Answer 2

1. Total debt in relation to shareholders’ funds
2. Profitability compared with interest payments

Question 3

Profit attributable to ordinary shareholders is calculated as…

Answer 3

Profit less tax, minority interests, and preference dividends.

Question 4

Market capitalisation of a company is calculated by…

Answer 4

Multiplying the number of shares in issue by their market price.

Question 5

Single Pricing (NAV per share)

Answer 5

Total net value of a fund’s assets, divided by the number of shares in issue

Question 6

Diluted NAV

Answer 6

NAV per ordinary share assuming all outstanding warrants and convertible loan stocks are exercised

Question 7

Ordinary income shares are also known as…

Answer 7

Income and residual capital shares