Archives: Quiz

Corporate Finance: Core Principles & Apps, 5e (Ross) Chapter 17 Options and Corporate Finance 1) Which term applies to the purchase or sale of an underlying asset via an option contract? A) Exercising the option B) Striking the price C) […]

4-1 Module 04 Sustainability and Natural Resources Answer Key True / False Questions 1. All eBay profits are based on business trends that impede sustainability efforts. 2. FALSE Sustainability requires us to change the way we manage everything. AACSB: Reflective […]

49) Reverse stock splits can be used to A) adjust the debt-equity ratio such that it falls within a preferred range. B) increase the excess cash held by a firm. C) increase both the number of shares outstanding and the […]

115. pragmatic-normative In normative societies there is a strong desire to explain and to know the absolute truth. There is respect for tradition, a low propensity to save, and a focus on quick results. A pragmatic orientation suggests a people […]

1 Corporate Finance: Core Principles & Apps, 5e (Ross) Chapter 16 Dividends and Other Payouts 1) How frequently do dividend-paying firms in the United States generally pay regular cash dividends? A) Annually B) Semiannually C) Quarterly D) Monthly E) Biannually […]

87. Material culture includes A. what people in the culture make, such as tools, art, everything material. B. tapestries but not their frames and the wool or other fabric before it is woven. C. only manufactures of which the culture […]

36) The complete termination of a firm as a going business concern is called a A) merger. B) repurchase program. C) liquidation. D) divestiture. E) reorganization. 37) A firm that has a negative net worth is said to be A) […]

47. How do the dimensions of Kluckhohn and Strodtbeck’s framework help us to better understand other cultures? A. They are meant to help us decode kinship patterns. B. They present choices that cultural members make when they act. C. They […]

Corporate Finance: Core Principles & Apps, 5e (Ross) Chapter 15 Capital Structure: Limits to the Use of Debt 1) Which one of these represents an indirect cost of financial distress? A) Court fees paid to a bankruptcy court B) Legal […]

3-1 Module 03 Sociocultural Forces Answer Key True / False Questions 1. We are each born with a unique culture. 2. TRUE Managers need to be able to communicate across cultural borders. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Remember […]

49) LT Transport is an unlevered firm with a total market value of $672,000 and 50,000 shares of stock outstanding. The firm has expected EBIT of $64,500 if the economy is normal and $73,000 if the economy booms. The firm […]

119. terms of trade. The ratio of international prices for goods being traded between two countries is known as the terms of trade. The ratio of international prices for goods being traded between two countries is known as the ____________. […]

Corporate Finance: Core Principles & Apps, 5e (Ross) Chapter 14 Capital Structure: Basic Concepts 1) Shareholders value firms based on their A) sizes. B) profits. C) original costs. D) depreciated values. E) market values. Answer: E Difficulty: 1 Easy Section: […]

89. A. During the prior three decades up to 2014, the proportion of FDI accounted for by the European Union increased. B. During the prior three decades up to 2014, the proportion of FDI accounted for by the European Union […]

Answer: D Difficulty: 2 Medium Section: 13.1 A Description of Efficient Capital Markets Topic: Market efficiency – foundations and types Bloom’s: Level 2 Understand Accessibility: Keyboard Navigation Corporate Finance: Core Principles & Apps, 5e (Ross) Chapter 13 Efficient Capital Markets […]

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-03 Distinguish among the theories that explain why certain goods are traded internationally. Topic: Trade Theories and Their Implications 64. A. Ecuador should focus production on coffee and trade for […]

50) An all-equity firm has a beta of 1.27. What will be the equity beta if the firm adopts a debt-to-equity ratio of 0.42? A) 1.829 B) 1.803 C) 1.786 D) 1.774 E) 1.843 51) A levered firm has a […]

Learning Objective: 02-01 Describe the magnitude of international trade and how it has grown. Topic: The Changing Nature of the Global Economy 39. The proportion of world trade accounted for by Latin America has evidenced ____ since 1980. A. an […]

Corporate Finance: Core Principles & Apps, 5e (Ross) Chapter 12 Risk, Cost of Capital, and Valuation 1) The discount rate for a project should equal the A) cost of equity of the firm. B) expected return on a financial asset […]

2-1 Module 02 International Trade and Investment Answer Key True / False Questions 1. Record levels of American outward foreign direct investment from 2010 to 2013, totaling more than $1.4 trillion, caused U.S. exports to decline during this time period. […]

55) The rate of return on the common stock of Flowers by Flo is expected to be 13 percent in a boom economy, 11 percent in a normal economy, and only 6 percent in a recessionary economy. The probabilities of […]

118. the same The forces in the foreign environment are the same as those in the domestic environment except that they occur outside the firm’s home country. However, they operate differently for several reasons. The forces in the foreign environment […]

Corporate Finance: Core Principles & Apps, 5e (Ross) Chapter 11 Return and Risk: The Capital Asset Pricing Model (CAPM) 1) Which one of these measures the interrelationship between two securities? A) Standard deviation B) Variance C) Beta D) Covariance E) […]

92. Which of the following is not linked to the cost driver of international business activity? A. A manufacturing company that follows its customers to foreign markets to be able to supply them. B. A company that goes abroad through […]

stock pays an annual dividend of $1.06 per share. Today, she sold all of her shares for $37.43 per share. What is her total dollar return on this investment? A) −$703 B) −$838 C) $1,022 D) $1,262 E) −$1,050 50) […]

64. International business really began A. with the East India Company chartered in 1600. B. when Singer Sewing Machine put up a factory in Scotland in 1868. C. before the time of Christ. D. when Colt Fire Arms set up […]

Corporate Finance: Core Principles & Apps, 5e (Ross) Chapter 10 Risk and Return: Lessons from Market History 1) Which one of the following values cannot be negative? A) Capital gain B) Total dollar return C) Holding period return D) Dividend […]

37. According to the text, you can improve your chances for obtaining an overseas post by doing all of the following except A. taking advanced classes in accounting or information systems. B. making your boss aware of your interest in […]

48) DK Markets expects a new project to produce sales of 9,600 units, ±8 percent. The expected variable cost per unit is $17 and the expected fixed costs are $47,000. Cost estimates are considered accurate within a range of ±3 […]

Module 01 The Challenging Context of International Business Answer Key True / False Questions 1. TRUE Companies need employees with diversity of thought and diversity of values, reflecting the increasing importance that globalization has for companies. All managers need to […]

Corporate Finance: Core Principles & Apps, 5e (Ross) Chapter 9 Risk Analysis, Real Options, and Capital Budgeting 1) In a decision tree, the accept/reject decision is dependent upon A) cash flows, probabilities, and future decisions. B) only the cash flows […]

142. mass customization The use of flexible, usually computer-aided manufacturing systems to produce and deliver customized products and services for different customers worldwide is known as mass customization. The use of flexible, usually computer-aided manufacturing systems to produce and deliver […]

51) BLD, Inc. just purchased some fixed assets at a total cost of $94,318 that are classified as 3-year property for MACRS. The MACRS table values are 0.3333, 0.4445, 0.1481, and 0.0741 for Years 1 to 4, respectively. What is […]

142. Foreign freight forwarders A foreign freight forwarder acts as an agent for the exporter. Foreign freight forwarders prepare documents, book space with a carrier, and in general act as the firm’s export traffic department. They also are a source […]

Corporate Finance: Core Principles & Apps, 5e (Ross) Chapter 8 Making Capital Investment Decisions 1) Global Enterprises has spent $134,000 on research developing a new type of shoe. For this shoe to now be manufactured, the firm will need to […]

99. Regarding cultural forces and their impact on standardization of global operations, which of the following is not true? A. Factories built in industrialized nations with large markets and high labor costs will typically favor capital-intensive processes. B. Factories built […]

20 50) Rodriquez’s Hot Rods is considering a new project with an initial cost of $54,780 and a discount rate of 14 percent. The project is expected to have cash inflows of $27,000 a year for 3 years. What is […]

Corporate Finance: Core Principles & Apps, 5e (Ross) Chapter 7 Net Present Value and Other Investment Rules 1) What is the key reason why a positive NPV project should be accepted? A) The project is expected to increase shareholder value. […]

Blooms: Understand Difficulty: 2 Medium Learning Objective: B-02 Explain the Incoterms; pricing; terms of sale; and payment. Topic: Incoterms 115. terms; sale Conditions of a sale that stipulate the point at which costs and risks are borne by the buyer […]

53) Mario’s is going to pay $1, $2.65, and $4 a share over the next 3 years, respectively. After that, the company plans to pay annual dividends of $1.65 per share indefinitely. If your required return is 14 percent, how […]

119. OECD, Organisation for Economic Cooperation and Development The OECD, sometimes known as “The Rich Men’s Club.” The _____________, a group of developed countries, is known for its individual country surveys and other research studies. AACSB: Reflective Thinking Blooms: Understand […]

1 Corporate Finance: Core Principles & Apps, 5e (Ross) Chapter 6 Stock Valuation 1) Alto stock pays an annual dividend of $1.10 a share and has done so for the past 6 years. No changes in the dividend amount are […]

68. “Little JIT” refers to A. reducing the size of the production facility to make it more manageable. B. narrowing the focus to the management of goods inventories. C. working with designers, production managers, and marketers to simplify product design. […]

75) A $1,000 Treasury bond matures in 13.5 years, pays interest semiannually, and carries a coupon rate of 3.53 percent. What is the price of this bond if the discount rate is 4 percent? A) $991.17 B) $951.34 C) $949.38 […]

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: B-02 Explain the Incoterms; pricing; terms of sale; and payment. Topic: Incoterms 74. Which of the following is the least risky for an exporter? A. Open account B. Irrevocable letter […]

58) Gugenheim offers 12-year coupon bonds with semiannual payments. The yield to maturity is 6.23 percent, and the bonds sell at 101 percent of par. What is the coupon rate? A) 3.09% B) 3.18% C) 3.31% D) 6.35% E) 6.61% […]

87. ASEAN +3 is A. the 10 ASEAN nations plus China, Japan, and Korea. B. the 10 ASEAN nations plus Australia, India, and the state of Hawaii. C. ASEAN’s commitment to economic, political, and social prosperity. D. ASEAN’s commitment to […]

1 Corporate Finance: Core Principles & Apps, 5e (Ross) Chapter 5 Interest Rates and Bond Valuation 1) All else constant, a bond will sell at ________ when the yield to maturity is ________ the coupon rate. A) par; less than […]

39. Measurement of supply chain performance varies by industry and company, but typical measures include all of the following metrics except A. the number of times inventory turns over in a year. B. the number of orders that are fulfilled […]

74) Clint just won a prize that will pay him $15,000 a year for 15 years, starting at the end of Year 5. What is the current value of this prize if the discount rate is 7 percent, compounded annually? […]