Archives: Quiz
978-0134472133 Test Bank Chapter 7 Part 1
1 Fundamentals of Multinational Finance, 6e (Moffett et al.) Chapter 7 Foreign Currency Derivatives: Futures and Options 7.1 Foreign Currency Futures 1) Financial derivatives are powerful tools that can be used by management for purposes of: A) speculation. B) hedging. […]
978-0134472133 Test Bank Chapter 6
1 Fundamentals of Multinational Finance, 6e (Moffett et al.) Chapter 6 International Parity Conditions 6.1 Prices and Exchange Rates 1) If an identical product can be sold in two different markets, and no restrictions exist on the sale or transportation […]
978-0134472133 Test Bank Chapter 5
1 Fundamentals of Multinational Finance, 6e (Moffett et al.) Chapter 5 The Foreign Exchange Market 5.1 Functions of the Foreign Exchange Market 1) Which of the following is NOT true regarding the market for foreign exchange? A) The market provides […]
978-0134472133 Test Bank Chapter 4
1 Fundamentals of Multinational Finance, 6e (Moffett et al.) Chapter 4 Financial Goals and Corporate Governance 4.1 Who Owns the Business? 1) Foreign stock markets are frequently characterized by controlling shareholders for the individual publicly traded firms. Which of the […]
978-0134472133 Test Bank Chapter 3 Part 2
13 27) The biggest problem that China faces in maintaining a stable value for their currency, the yuan, is their lack of foreign exchange reserves. Answer: FALSE Diff: 1 L.O.: 3.2 The Accounts of the Balance of Payments Skill: Recognition […]
978-0134472133 Test Bank Chapter 3 Part 1
1 Fundamentals of Multinational Finance, 6e (Moffett et al.) Chapter 3 The Balance of Payments 3.1 Fundamentals of BOP Accounting 1) Which of the following is NOT a major subaccount of the Balance of Payments? A) the financial account B) […]
978-0134472133 Test Bank Chapter 2
1 Fundamentals of Multinational Finance, 6e (Moffett et al.) Chapter 2 The International Monetary System 2.1 History of the International Monetary System 1) Under the gold standard of currency exchange that existed from 1879 to 1914, an ounce of gold […]
978-0134472133 Test Bank Chapter 18
Fundamentals of Multinational Finance, 6e (Moffett et al.) Chapter 18 Multinational Capital Budgeting and Cross-Border Acquisitions 18.1 Complexities of Budgeting for a Foreign Project 1) The traditional financial analysis applied to foreign or domestic projects, to determine the project’s value […]
978-0134472133 Test Bank Chapter 17
Fundamentals of Multinational Finance, 6e (Moffett et al.) Chapter 17 Foreign Direct Investment and Political Risk 17.1 The Foreign Direct Investment Decision 1) An example of economies of scale in financing include: A) being able to access the Euroequity, Eurobond, […]
978-0134472133 Test Bank Chapter 16
Fundamentals of Multinational Finance, 6e (Moffett et al.) Chapter 16 International Trade Finance 16.1 The Trade Relationship 1) The exporter-importer relationship to a corporation of a foreign importer that has not previously conducted business with the firm would be an: […]
978-0134472133 Test Bank Chapter 15
Fundamentals of Multinational Finance, 6e (Moffett et al.) Chapter 15 Multinational Tax Management 15.1 Tax Principles 1) The issue of ethics in the reporting of income and the payment of taxes is a considerable one. The authors state that most […]
978-0134472133 Test Bank Chapter 14 Part 2
5) ADRs that are created at the request of a foreign firm wanting its shares traded in the United States are: A) facilitated. B) unfacilitated. C) sponsored. D) unsponsored. Answer: C Diff: 2 L.O.: 14.4 Depositary Receipts Skill: Recognition AACSB: […]
978-0134472133 Test Bank Chapter 14 Part 1
Fundamentals of Multinational Finance, 6e (Moffett et al.) Chapter 14 Raising Equity and Debt Globally 14.1 Designing a Strategy to Source Capital Globally 1) The choice of when and how to source capital globally is usually aided early on by […]
978-0134472133 Test Bank Chapter 13 Part 2
14) Use of the International CAPM (ICAPM) assures that the WACC will be lower than if a purely domestic market portfolio had been used in the estimation of the cost of equity. Answer: FALSE Diff: 2 L.O.: 13.2 International Portfolio […]
978-0134472133 Test Bank Chapter 13 Part 1
Fundamentals of Multinational Finance, 6e (Moffett et al.) Chapter 13 The Global Cost and Availability of Capital 13.1 Financial Globalization and Strategy 1) If a firm lies within a country with ________ or ________ domestic capital markets, it can achieve […]
978-0134472133 Test Bank Chapter 12
Fundamentals of Multinational Finance, 6e (Moffett et al.) Chapter 12 Operating Exposure 12.1 A Multinationalʹs Operating Exposure 1) Another name for operating exposure is ________ exposure. A) economic B) competitive C) strategic D) all of the above Answer: D Diff: […]
978-0134472133 Test Bank Chapter 11
Fundamentals of Multinational Finance, 6e (Moffett et al.) Chapter 11 Translation Exposure 11.1 Overview of Translation 1) Translation exposure may also be called ________ exposure. A) transaction B) operating C) accounting D) currency Answer: C Diff: 1 L.O.: 11.1 Overview […]
978-0134472133 Test Bank Chapter 10
1 Fundamentals of Multinational Finance, 6e (Moffett et al.) Chapter 10 Transaction Exposure 10.1 Types of Foreign Exchange Exposure 1) ________ exposure deals with cash flows that result from existing contractual obligations. A) Operating B) Transaction C) Translation D) Economic […]
978-0134472133 Test Bank Chapter 1
1 Fundamentals of Multinational Finance, 6e (Moffett et al.) Chapter 1 Multinational Financial Management: Opportunities and Challenges 1.1 Financial Globalization and Risk 1) Financial globalization has not resulted in: A) continuing imbalances of balance of payments. B) an increase in […]
978-0134476308 Test Bank Chapter 9 Part 3
Table 9.1 A firm has determined its optimal capital structure which is composed of the following sources and target market value proportions. Debt: The firm can sell a 12-year, $1,000 par value, 7 percent bond for $960. A flotation cost […]
978-0134476308 Test Bank Chapter 9 Part 2
18) The cost of retained earnings will always equal the cost of preferred stock. Answer: FALSE Diff: 1 Topic: Cost of Retained Earnings Learning Obj.: LG 5 Learning Outcome: F-14 AACSB: Analytical Thinking 19) The cost of common stock equity […]
978-0134476308 Test Bank Chapter 9 Part 1
Principles of Managerial Finance, Brief Ed., 8e (Zutter/Smart) Chapter 9 The Cost of Capital 9.1 Overview of the cost of capital 1) Holding risk constant, the implementation of projects with a rate of return above the cost of capital will […]
978-0134476308 Test Bank Chapter 8 Part 4
71) In the capital asset pricing model, the general risk preferences of investors in the marketplace are reflected by ________. A) the risk-free rate B) the level of the security market line C) the slope of the security market line […]
978-0134476308 Test Bank Chapter 8 Part 3
31) An increase in nondiversifiable risk would ________. A) cause an increase in the beta and would lower the required return B) have no effect on the beta and would, therefore, cause no change in the required return C) cause […]
978-0134476308 Test Bank Chapter 8 Part 2
2) New investments must be considered in light of their impact on the risk and return of the portfolio of assets because the risk of any single proposed asset investment is not independent of other assets. Answer: TRUE Diff: 1 […]
978-0134476308 Test Bank Chapter 8 Part 1
Principles of Managerial Finance, Brief Ed., 8e (Zutter/Smart) Chapter 8 Risk and Return 8.1 Risk and return fundamentals 1) Investment A guarantees its holder $100 return. Investment B earns $0 or $200 with equal chances (i.e., an average of $100) […]
978-0134476308 Test Bank Chapter 7 Part 3
40) In response to the stock market’s reaction to its dividend policy, the Nico’s Toy Company has decided to increase its dividend payment at a rate of 4 percent per year. The firm’s most recent dividend is $3.25 and the […]
978-0134476308 Test Bank Chapter 7 Part 2
67) The risk cost of preferred stock is ________. A) lower than the cost of long-term debt. B) higher than the cost of common stock. C) higher than the cost of long-term debt and lower than the cost of common […]
978-0134476308 Test Bank Chapter 7 Part 1
Principles of Managerial Finance, Brief Ed., 8e (Zutter/Smart) Chapter 7 Stock Valuation 7.1 Differences between debt and equity 1) Unlike creditors, equityholders are owners of the firm. Answer: TRUE Diff: 1 Topic: Voice in Management Learning Obj.: LG 1 Learning […]
978-0134476308 Test Bank Chapter 6 Part 4
21) Zheng Corporation plans to issue new bonds to finance its expansion plans. In its efforts to price the issue, Zheng Corporation has identified a company of similar risk with an outstanding bond issue that has an 8 percent coupon […]
978-0134476308 Test Bank Chapter 6 Part 3
80) ________ are secured by stock and/or bonds that are owned by the issuer. A) Mortgage bonds B) Equipment trust certificates C) Collateral trust bonds D) Subordinated debentures Answer: C Diff: 1 Topic: Common Types of Bonds Learning Obj.: LG […]
978-0134476308 Test Bank Chapter 6 Part 2
6) Restrictive covenants, coupled with standard debt provisions, help the lender to monitor the borrower’s activities to ensure efficient use of funds. Answer: TRUE Diff: 1 Topic: Legal Aspects of Corporate Bonds Learning Obj.: LG 2 Learning Outcome: F-06 AACSB: […]
978-0134476308 Test Bank Chapter 6 Part 1
Principles of Managerial Finance, Brief Ed., 8e (Zutter/Smart) Chapter 6 Interest Rates and Bond Valuation 6.1 Interest rates and required returns 1) An interest rate or a required rate of return represents the cost of money. Answer: TRUE Diff: 1 […]
978-0134476308 Test Bank Chapter 5 Part 4
35) Aunt Tilly borrows $3,500 from the bank at 12 percent annually compounded interest to be repaid in four equal annual installments. The interest paid in the first year is ________. A) $152 B) $277 C) $420 D) $1,152 Answer: […]
978-0134476308 Test Bank Chapter 5 Part 3
23) Assume you have a choice between two deposit accounts. Account X has an annual percentage rate of 12.25 percent but with interest compounded monthly. Account Y has an annual percentage rate of 12.20 percent with interest compounded continuously. Which […]
978-0134476308 Test Bank Chapter 5 Part 2
37) You have been given a choice between two retirement policies as described below. Policy A: You will receive equal annual payments of $10,000 beginning 35 years from now for 10 years. Policy B: You will receive one lump-sum of […]
978-0134476308 Test Bank Chapter 5 Part 1
Principles of Managerial Finance, Brief Ed., 8e (Zutter/Smart) Chapter 5 Time Value of Money 5.1 The role of time value in finance 1) The main idea behind the time value of money is that a dollar today is worth more […]
978-0134476308 Test Bank Chapter 4 Part 4
2) In a period of rising sales utilizing past cost and expense ratios (percent-of-sales method), when preparing pro forma financial statements and planning financing, will tend to ________. A) understate retained earnings and understate the additional financing needed B) overstate […]
978-0134476308 Test Bank Chapter 4 Part 3
26) Cash disbursements include ________. A) amortization expense B) rent payments C) depreciation expense D) depletion Answer: B Diff: 1 Topic: Preparing The Cash Budget Learning Obj.: LG 4 Learning Outcome: F-25 AACSB: Analytical Thinking 27) A projected excess cash […]
978-0134476308 Test Bank Chapter 4 Part 2
55) Cash flows that result from debt and equity financing transactions, including incurrence and repayment of debt, cash inflows from the sale of stock, and cash outflows to pay cash dividends or repurchase stock are called cash flow from ________. […]
978-0134476308 Test Bank Chapter 4 Part 1
Principles of Managerial Finance, Brief Ed., 8e (Zutter/Smart) Chapter 4 Long- and Short-Term Financial Planning 4.1 The financial planning process 1) Strategic financial plans are planned long-term financial actions and the anticipated financial impact of those actions. Answer: TRUE Diff: […]
978-0134476308 Test Bank Chapter 3 Part 4
58 13) The financial leverage multiplier is the ratio of ________. A) current assets to common stockholders’ equity B) total assets to common stockholders’ equity C) total assets to total debt D) current assets to current liabilities Answer: B Diff: […]
978-0134476308 Test Bank Chapter 3 Part 3
10) The ________ ratio indicates whether a firm will be able to meet interest obligations due on outstanding debt. A) debt-to-equity B) interest turnover C) total assets turnover D) times interest earned Answer: D Diff: 1 Topic: Times Interest Earned […]
978-0134476308 Test Bank Chapter 3 Part 2
66) Ag Silver Mining, Inc. has $500,000 of earnings before interest and taxes at the year end. Interest expenses for the year were $10,000. The firm expects to distribute $100,000 in dividends. Calculate the earnings after taxes for the firm […]
978-0134476308 Test Bank Chapter 3 Part 1
Principles of Managerial Finance, Brief Ed., 8e (Zutter/Smart) Chapter 3 Financial Statements and Ratio Analysis 3.1 The stockholder’s report 1) The Financial Accounting Standards Board (FASB) is the federal regulatory body that governs the sale and listing of securities. Answer: […]
978-0134476308 Test Bank Chapter 2 Part 2
47) One piece of evidence suggesting that the stock market is efficient is that most individual investors cannot earn returns that beat the overall market average return, but professional investors such as mutual fund and pension fund managers generally do […]
978-0134476308 Test Bank Chapter 2 Part 1
Principles of Managerial Finance, Brief Ed., 8e (Zutter/Smart) Chapter 2 The Financial Market Environment 2.1 Financial institutions 1) A financial institution is an intermediary that channels the savings of individuals, businesses, and governments into loans or investments. Answer: TRUE Diff: […]
978-0134476308 Test Bank Chapter 15 Part 3
83) Bessey Aviation has just sold an issue of 30-day commercial paper with a face value of $5,000,000. The firm has just received $4,958,000. What is the effective annual interest rate on the commercial paper? Answer: {($5,000,000 – $4,958,000)/$4,958,000} × […]
978-0134476308 Test Bank Chapter 15 Part 2
36) Short-term, self-liquidating loans are intended to ________. A) provide one-time loan to the borrower who needs funds for a specific purpose B) cover seasonal peaks in financing caused by inventory and receivable buildups C) provide maximum amount to the […]
978-0134476308 Test Bank Chapter 15 Part 1
Principles of Managerial Finance, Brief Ed., 8e (Zutter/Smart) Chapter 15 Current Liabilities Management 15.1 Spontaneous liabilities 1) Spontaneous unsecured financing has a specific interest cost associated with it that can be at a fixed or floating rate. Answer: FALSE Diff: […]