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What is the most likely reason for the difference in these rates 1. If the inflation rate in Japan is higher than the inflation rate in the U.S., we would: 2. Your cousin notes that he can borrow money in the US at a rate of 8% and invest it in Brazilian banks and get a return of 17%. What is the most likely reason for the difference in these rates? Business Management Assignment Help, Business Management Homework help, Business ...

Other / Other 28 Apr 2016

The bottom-up method for forecasting sales 1.The bottom-up method for forecasting sales: 2. The cash budget is most critical for 3. Consider Higgins' sustainable growth model. Which of the following would produce a decrease in value for g*? Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help ...

Other / Other 28 Apr 2016

One approach for evaluating the investment project 1. Consider a U.S. firm undertaking an investment project in France. If the firm's shareholders maintain internationally diversified portfolios, the project's beta should be calculated: 2. One approach for evaluating the investment project dominated in a foreign currency is to calculate the NPV in dollar terms, assuming that the firm hedges the project's cash flows using __________. 3. ...

Other / Other 28 Apr 2016

A firm that employs an aggressive strategy 1. The technique known as "leading and lagging" can be effective in correcting undesirable exchange rate exposures for MNCs. In appreciation-prone countries, intra-MNC accounts receivable should be collected __________, and intra-MNC accounts payable should be __________. 2. __________ influence currency values when they take positions to offset the risks of their existing exposures to certain c ...

Other / Other 28 Apr 2016

The greatest risk with using short-term financing 1. The greatest risk with using short-term financing to finance short-term needs is 2. A long-term financial plan begins with __________. 3. "Required total financing" figures in a cash budget: Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help ...

Other / Other 28 Apr 2016

Which of the following would not be considered a player 1. Which of the following would not be considered a player in the foreign exchange (forex) market? 2. The risk that arises from the fact that MNCs have to report foreign revenues and costs in their domestic financial statements is called 3. Using short-term financing to meet short-term needs takes advantage of short-term rates generally _______ cost than long-term financing, expose ...

Other / Other 28 Apr 2016

What would be the cost of equity from new common stock 1. The amount of retained earnings limit the size of internal equity financing. If the amount of retained earnings is $25m, where do you have a switch from the internal to external equity financing in terms of the size of the total funding when the equity financing accounts for 25% of the total funding and the remaining is from debt? a. $150m b. $100m c. $180m d. $130m e. $150 ...

Other / Other 27 Apr 2016

What is the bond contract feature that allows the issuer to redeem bonds 1. You have 2 options to buy a membership. One is to pay $5,000 upfront today and the other one is to pay $500 each year starting today. If the prevailing discount rate is 8%, how many years do you remain as a member before the $500 annual payment becomes more expensive than the one-time membership? a. 14.5 years b. 17.5 years c. 18.5 years d. 19.5 years ...

Other / Other 27 Apr 2016

Fergie Inc, has a total asset turnover ratio 1. Which of the following statements is CORRECT? a. One disadvantage of organizing a business as a corporation rather than a partnership is that the equity investors in a corporation are exposed to unlimited liability. b. Using restrictive covenants in debt agreements is an effective way to reduce conflicts between stockholders and managers. c. Managers generally welcome hostile takeovers sinc ...

Other / Other 27 Apr 2016

Which one of the following would NOT result in incremental cash flows 1. Masulis Inc. is considering a project that has the following cash flow and WACC data. What is the project's discounted payback? WACC: 10.00% Year 0 1 2 3 4 Cash flows -$950 $525 $485 $445 $405 a. 1.61 years b. 1.79 years c. 1.99 years d. 2.22 years e. 2.44 years 2. Tesar Chemicals is considering Projects S and L, whose cash flows are shown below. ...

Other / Other 27 Apr 2016