Question details

Fin 534 Final Exam Part 2 | A+ work
$ 15.00

Question 1

2 out of 2 points

 

 
 

Which of the following is NOT normally regarded as being a good reason to establish an ESOP?

     
       

https://blackboard.strayer.edu/images/ci/icons/generic_updown.gifQuestion 2

2 out of 2 points

 

 
 

Which of the following is NOT normally regarded as being a barrier to hostile takeovers?

     
       

https://blackboard.strayer.edu/images/ci/icons/generic_updown.gifQuestion 3

2 out of 2 points

 

 
 

Which of the following statements is correct?

     
       

https://blackboard.strayer.edu/images/ci/icons/generic_updown.gifQuestion 4

2 out of 2 points

 

 
 

Poff Industries' stock currently sells for $120 a share. You own 100 shares of the stock. The company is contemplating a 2-for-1 stock split. Which of the following best describes what your position will be after such a split takes place?

     
       

https://blackboard.strayer.edu/images/ci/icons/generic_updown.gifQuestion 5

2 out of 2 points

 

 
 

Rohter Galeano Inc. is considering how to set its dividend policy. It has a capital budget of $3,000,000. The company wants to maintain a target capital structure that is 15% debt and 85% equity. The company forecasts that its net income this year will be $3,500,000. If the company follows a residual dividend policy, what will be its total dividend payment?

     
       

https://blackboard.strayer.edu/images/ci/icons/generic_updown.gifQuestion 6

2 out of 2 points

 

 
 

Which of the following statements is correct?

     
       

https://blackboard.strayer.edu/images/ci/icons/generic_updown.gifQuestion 7

2 out of 2 points

 

 
 

Which of the following statements is correct?

     
       

https://blackboard.strayer.edu/images/ci/icons/generic_updown.gifQuestion 8

2 out of 2 points

 

 
 

If a firm adheres strictly to the residual dividend policy, the issuance of new common stock would suggest that

     
       

https://blackboard.strayer.edu/images/ci/icons/generic_updown.gifQuestion 9

2 out of 2 points

 

 
 

Which of the following actions will best enable a company to raise additional equity capital?

     
       

https://blackboard.strayer.edu/images/ci/icons/generic_updown.gifQuestion 10

2 out of 2 points

 

 
 

Which of the following would increase the likelihood that a company would increase its debt ratio, other things held constant?

     
       

https://blackboard.strayer.edu/images/ci/icons/generic_updown.gifQuestion 11

2 out of 2 points

 

 
 

Which of the following statements best describes the optimal capital structure? The optimal capital structure is the mix of debt, equity, and preferred stock that maximizes the company's ____.

     
       

https://blackboard.strayer.edu/images/ci/icons/generic_updown.gifQuestion 12

2 out of 2 points

 

 
 

Other things held constant, which of the following events is most likely to encourage a firm to increase the amount of debt in its capital structure?

     
       

https://blackboard.strayer.edu/images/ci/icons/generic_updown.gifQuestion 13

2 out of 2 points

 

 
 

Which of the following statements is CORRECT?

     
       

https://blackboard.strayer.edu/images/ci/icons/generic_updown.gifQuestion 14

2 out of 2 points

 

 
 

Which of the following statements is CORRECT?

     
       

https://blackboard.strayer.edu/images/ci/icons/generic_updown.gifQuestion 15

2 out of 2 points

 

 
 

Which of these items will not generally be affected by an increase in the debt ratio?

     
       

https://blackboard.strayer.edu/images/ci/icons/generic_updown.gifQuestion 16

2 out of 2 points

 

 
 

Which of the following events is likely to encourage a company to raise its target debt ratio, other things held constant?

     
       

https://blackboard.strayer.edu/images/ci/icons/generic_updown.gifQuestion 17

2 out of 2 points

 

 
 

Firms generally choose to finance temporary current operating assets with short-term debt because

     
       

https://blackboard.strayer.edu/images/ci/icons/generic_updown.gifQuestion 18

2 out of 2 points

 

 
 

Which of the following items should a company report directly in its monthly cash budget?

     
       

https://blackboard.strayer.edu/images/ci/icons/generic_updown.gifQuestion 19

2 out of 2 points

 

 
 

Which of the following statements is most consistent with efficient inventory management? The firm has a

     
       

https://blackboard.strayer.edu/images/ci/icons/generic_updown.gifQuestion 20

2 out of 2 points

 

 
 

Which of the following is NOT commonly regarded as being a credit policy variable?

     
       

https://blackboard.strayer.edu/images/ci/icons/generic_updown.gifQuestion 21

2 out of 2 points

 

 
 

Which of the following is NOT directly reflected in the cash budget of a firm that is in the zero tax bracket?

     
       

https://blackboard.strayer.edu/images/ci/icons/generic_updown.gifQuestion 22

2 out of 2 points

 

 
 

Other things held constant, which of the following would tend to reduce the cash conversion cycle?

     

Selected Answer:

Correct

Continue to take all discounts that are offered and pay on the net date.

Correct Answer:

Correct

Continue to take all discounts that are offered and pay on the net date.

     

https://blackboard.strayer.edu/images/ci/icons/generic_updown.gifQuestion 23

2 out of 2 points

 

 
 

Suppose a foreign investor who holds tax-exempt Eurobonds paying 9% is considering investing in an equivalent-risk domestic bond in a country with a 28% withholding tax on interest paid to foreigners. If 9% after-tax is the investor's required return, what before-tax rate would the domestic bond need to pay to provide the required after-tax return?

     
       

https://blackboard.strayer.edu/images/ci/icons/generic_updown.gifQuestion 24

2 out of 2 points

 

 
 

Which of the following is NOT a reason why companies move into international operations?

     
       

https://blackboard.strayer.edu/images/ci/icons/generic_updown.gifQuestion 25

2 out of 2 points

 

 
 

If it takes $0.71 U.S. dollars to purchase one Swiss franc, how many Swiss francs can one U.S. dollar buy?

     
       

https://blackboard.strayer.edu/images/ci/icons/generic_updown.gifQuestion 26

2 out of 2 points

 

 
 

Suppose it takes 1.82 U.S. dollars today to purchase one British pound in the foreign exchange market, and currency forecasters predict that the U.S. dollar will depreciate by 12.0% against the pound over the next 30 days. How many dollars will a pound buy in 30 days?

     
       

https://blackboard.strayer.edu/images/ci/icons/generic_updown.gifQuestion 27

2 out of 2 points

 

 
 

If 1.64 Canadian dollars can purchase one U.S. dollar, how many U.S. dollars can you purchase for one Canadian dollar?

     
       

https://blackboard.strayer.edu/images/ci/icons/generic_updown.gifQuestion 28

2 out of 2 points

 

 
 

Suppose 1 U.S. dollar equals 1.60 Canadian dollars in the spot market. 6-month Canadian securities have an annualized return of 6% (and thus a 6-month periodic return of 3%). 6-month U.S. securities have an annualized return of 6.5% and a periodic return of 3.25%. If interest rate parity holds, what is the U.S. dollar-Canadian dollar exchange rate in the 180-day forward market?

     
       

https://blackboard.strayer.edu/images/ci/icons/generic_updown.gifQuestion 29

2 out of 2 points

 

 
 

A box of chocolate candy costs 28.80 Swiss francs in Switzerland and $20 in the United States. Assuming that purchasing power parity (PPP) holds, what is the current exchange rate?

     
       

https://blackboard.strayer.edu/images/ci/icons/generic_updown.gifQuestion 30

2 out of 2 points

 

 
 

Suppose one U.S. dollar can purchase 144 yen today in the foreign exchange market. If the yen depreciates by 8.0% tomorrow, how many yen could one U.S. dollar buy tomorrow?

     
       

Wednesday, March 15, 2017 8:56:29 PM EDT

 

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