Section A (25 Marks)

Question A1 (5 marks).

You are planning to use a cash contribution of $30,000 to invest in a NAB margin loan and are examining three securities as potential investments:

ASX Code	Company Name	Single stock LVR
ARG	Argo Investments	75%
DCG	Decmil Group Limited	40%
UGL	UGL Limted	55%

Calculate:

1. The permitted borrowing amount;
2. The maximum value of the portfolio.

Question A2 (5 marks).

Briefly discuss two under-pricing theories associated with Initial Public Offerings (IPOs).

Question A3 (5 marks).

In terms of privatisation, describe a public-private partnership (PPP).

Question A4 (5 marks).

In an IPO, does book building contribute to market efficiency? Justify your answer.

Question A5 (5 marks).

Briefly discuss the benefits of securitisation to the loan originator.