Intl. Financial Sample Queations
University of San Francisco
School of Management PRACTICE FINAL EXAM
BUS 430 Prof. Sara Ding International Financial Management Spring 2013 Instructions: Answer all questions in Part A, Part B, and Part C. Write your answers for Part A on the next page and write your answers for Part B and Part C in the space provided below the question. You may use one page (double sided) of notes and a financial calculator, but no other materials.
Section:_______________________ Name:________________________ USF ID:_______________________
Score Sheet Part A (Write your answer to the multiple choice questions below) 1. ________ 2. ________ 3. ________ 4. ________ 5. ________ 6. ________ 7. ________ 8. ________ 9. ________
10. ________ 11. ________ 12. ________ 13. ________ 14. ________ 15. ________ 16. ________
Part B (Do not write here) 1. 2. 3. Part C (Do not write here) 1.
Total
Part A Multiple Choices (2.5 points*16= 40 points) 1) If a firm lies within a country with ________ or ________ domestic capital markets, it can achieve lower global cost and greater availability of capital with a properly designed and implemented strategy to participate in international capital markets. A) liquid; segmented B) liquid; large C) illiquid; segmented D) large; illiquid 2) Which of the following is generally unnecessary in measuring the cost of debt? A) a forecast of future interest rates B) the proportions of the various classes of debt a firm proposes to use C) the corporate income tax rate D) All of the above are necessary for measuring the cost of debt. 3) Each ADR represents ________ of the shares of the underlying foreign stock. A) a multiple B) 100 C) 1 D) ADRs have nothing to do with foreign stocks. 4) Level I ADRs trade primarily A) on the New York Stock Exchange. B) on the American Stock Exchange. C) over the counter or pink sheets. D) Level I ADRs typically do not trade at all, but instead are privately issued and held until maturity. 5) By cross listing
School of Management PRACTICE FINAL EXAM
BUS 430 Prof. Sara Ding International Financial Management Spring 2013 Instructions: Answer all questions in Part A, Part B, and Part C. Write your answers for Part A on the next page and write your answers for Part B and Part C in the space provided below the question. You may use one page (double sided) of notes and a financial calculator, but no other materials.
Section:_______________________ Name:________________________ USF ID:_______________________
Score Sheet Part A (Write your answer to the multiple choice questions below) 1. ________ 2. ________ 3. ________ 4. ________ 5. ________ 6. ________ 7. ________ 8. ________ 9. ________
10. ________ 11. ________ 12. ________ 13. ________ 14. ________ 15. ________ 16. ________
Part B (Do not write here) 1. 2. 3. Part C (Do not write here) 1.
Total
Part A Multiple Choices (2.5 points*16= 40 points) 1) If a firm lies within a country with ________ or ________ domestic capital markets, it can achieve lower global cost and greater availability of capital with a properly designed and implemented strategy to participate in international capital markets. A) liquid; segmented B) liquid; large C) illiquid; segmented D) large; illiquid 2) Which of the following is generally unnecessary in measuring the cost of debt? A) a forecast of future interest rates B) the proportions of the various classes of debt a firm proposes to use C) the corporate income tax rate D) All of the above are necessary for measuring the cost of debt. 3) Each ADR represents ________ of the shares of the underlying foreign stock. A) a multiple B) 100 C) 1 D) ADRs have nothing to do with foreign stocks. 4) Level I ADRs trade primarily A) on the New York Stock Exchange. B) on the American Stock Exchange. C) over the counter or pink sheets. D) Level I ADRs typically do not trade at all, but instead are privately issued and held until maturity. 5) By cross listing