E4 Strategy, markets and fintech

What does shareholder wealth maximisation take into account that profit maximisation often ignores?

• 1 The office size
• 2 The timing and risk of returns
• 3 The number of employees
• 4 The audit fee

A share price rises from $5.00 to $5.60 and a dividend of $0.20 is paid. What is the total shareholder return?

• 1 12%
• 2 11.2%
• 3 4%
• 4 16%

Which measure is used to assess the achievement of financial objectives?

• 1 Staff turnover only
• 2 Span of control
• 3 Return on capital employed
• 4 Office rent

Which is a feature of a corporate bond market compared with a stock market?

• 1 It raises equity with residual returns
• 2 It sets tax rates
• 3 It is only for short-term money
• 4 It raises debt with fixed returns

Peer-to-peer lending platforms are an example of:

• 1 Government policy
• 2 Fintech changing how finance is provided
• 3 A tax relief
• 4 A traditional bank loan

Which of these is a money market instrument that is a discount instrument?

• 1 A treasury bill
• 2 An ordinary share
• 3 A long-term bond
• 4 A debenture

A business grows faster than its working capital can support. This is:

• 1 Gearing
• 2 Over-capitalisation
• 3 Factoring
• 4 Overtrading

Under agency theory, which problem arises?

• 1 Shareholders manage the company
• 2 Managers may act in their own interests, not the shareholders'
• 3 Auditors set strategy
• 4 Lenders own the shares