Solved by: AllAcademicHelp.com
Which one of the following types of international expansion involves the highest level of participation in the form of capital at risk and potential for profit?
Licensing agreementJoint ventureDirect ownershipSales subsidiaryQuestion-2
Which of these is not a major trade agreement or zone?
MercosurInternational Monetary Fund (IMF)Multinational Corporation Directive (MCD)Central American Fund (CAF)Question-3
The uncertainty that relates to future cash flows is referred to as
risk.the agency problem.friction.liability.Question-4
What type of business organization would give your investors no liability but you, as the owner and operator, unlimited liability?
Limited liability corporation (LLC)CorporationLimited partnership (LP)D.General partnershipQuestion-5
Carl’s Tires is planning to merge with Joe’s Body Shop to offer a combined auto repair services shop. Carl’s Tires has total costs of $1,500,000 and sales of $2,000,000, while Joe’s Body Shop features costs $2,200,000 and sales of $4,000,000. The combined firms will be able to achieve economies of scope sufficient to reduce costs by $400,000 while maintaining sales at current levels. Calculate the difference between the percentage values of the average costs of the merged firms and the combined average costs of two nearby competitors. These competitors continue to sell tires and do auto repair separately, having total costs of $2,000,000 and sales of $2,500,000, $2,400,000, and $3,200,000, respectively.
34 percent22.19 percent28.45 percent23.56 percentQuestion-6
What type of strategies do financial managers implement to reduce exchange rate risks?
Calculate Altman’s Z-score for a firm seeking a loan with the following financial value ratios:
A firm with total costs of $1,400,000 and sales of $2,000,000 merges with a smaller firm with total costs of $700,000 and sales of $1,200,000 million. Calculate the difference in average cost of production expressed in percent.
6.72 percent4.38 percent15 percent9 percentQuestion-9
What are two sources of friction that reduce the amount of capital a firm returns to investors?
Risk and the agency problemThe agency problem retained earningsTaxes and riskRetained earnings and taxesQuestion-10
Tax __ is commonly a tax consideration motivating a merger.
losses from surplus fundslosses from paying down debtgains from unused debt capacitygains from increased operating incomeQuestion-11
Calculate the change in HHI following a merger between firm B and firm D in an industry with the following market share levels:
Using the table below for spot and forward exchange rates, what should the six-month forward rate be for the Swiss franc if U.S. six-month interest rates are 0.22 percent and Swiss six-month rates are 0.18 percent?
The study of applying specific value to things we own, services we use, and decisions we make is called
financial management.finance.time value of money (TVM).investments.Question-14
Which one of the following is used in restructuring a firm’s debt?
Determine the cross rate between Australian and Canadian dollars if $1.0344 Australian will buy $1 U.S. and $0.9788 Canadian will buy $1 U.S.
Cash flows for a foreign project will be in the foreign currency while the discount while the discount rate is usually evaluated from the domestic currency perspective. Which one of the following is a method for resolving the problem?
Engaging in arbitrage to make up for any potential foreign exchange lossesConverting the domestic discount rate to an equivalent in the foreign currencyUsing purchasing power parity to determine the discount rateConverting all cash flows from the foreign currency in question to another foreign currencyQuestion-17
If gold is selling for $1,540 per ounce in the United States, using the currency exchange rates in this table, what should gold’s price be in Australian dollars according to the concept of purchasing power parity (PPP)?
$1,488.22 Australian per ounce$1,598.44 Australian per ounce$1,546.28 Australian per ounce$1,586.51 Australian per ounceQuestion-18
What’s meant by the term exchange rate risk?
The potential that a fixed peg arrangement will failThe potential for exchange rates to change unfavorably over timeThe ability to profit by predicting the movement of exchange ratesThe possibility that direct quotes and cross rates will differQuestion-19
Adam Smith attributed his belief that individuals pursuing their own economic self-interest would result in the greatest good for society over the long term to
economies of scale.the invisible hand.securitization.the time value of money (TVM).Question-20
Which one of the following is not a benefit of using a credit-scoring model?
Numerically establishing which factors are important in explaining bankruptcy riskScreening high-risk firmsImproving the pricing of bankruptcy riskReducing the likelihood of bankruptcy
Let’s block ads! (Why?)
READY TO PLACE AN ORDER