Mock
896N1
THE UNIVERSITY OF SUSSEX
MSc EXAMINATION 2011/12
SAMPLE – MOCK EXAMINATION
Multinational Financial Management
Date Time
Student number
This exam paper is divided into three parts: Part A: multiple-choice questions (answer sheet on page 2 of this document) Part B: calculation question Part C: questions requiring short written answers Duration: 2.0 hours University approved calculators are permitted
Write your student number on this document and submit it with the answer book containing your answers to Parts B and C.
Multinational Financial Management
Answer sheet for multiple choice questions in Part A Student number_____________________ Question Answer A 1 A 2 A 3 A 4 A 5 A 6 A 7 A 8 A 9 A 10 A Answer B B B B B B B B B B B Answer C C C C C C C C C C C Answer D D D D D D D D D D D 896N1
Circle the answer you think is correct
Part A: Multiple-choice questions Attempt all questions Two marks for each correct answer (there are no penalty marks) Write your answers on the answer sheet on page 2 of this document Circle the answer you think is correct 1. The forecasted inflation rates for China and Australia are 3% and 5% respectively. The nominal interest rate or yield in the Australian Dollar market (one year sovereign debt) is 9% while the equivalent rate in China is 6%. The spot exchange rate is CNY 6.6807/Australia$. What is the spot exchange rate one year from now? A. CNY 6.5534/Australia$ B. CNY 6.3256/Australia$ C. CNY 5.9868/Australia$ D. CNY 7.1354/Australia$
You are the CFO of South Side Ventures, An Australian domiciled firm, that has debt and equity listed on the Australian Stock Exchange in order to finance its overseas expansion strategy. The Australian corporate tax is 30% and annualized yield on Australian 1 year government bonds is 4.37%. As CFO use the above information to answer the following questions (questions 2 – 6):
2. The standard deviation of South Side Ventures stock is 30%, the standard deviation of
THE UNIVERSITY OF SUSSEX
MSc EXAMINATION 2011/12
SAMPLE – MOCK EXAMINATION
Multinational Financial Management
Date Time
Student number
This exam paper is divided into three parts: Part A: multiple-choice questions (answer sheet on page 2 of this document) Part B: calculation question Part C: questions requiring short written answers Duration: 2.0 hours University approved calculators are permitted
Write your student number on this document and submit it with the answer book containing your answers to Parts B and C.
Multinational Financial Management
Answer sheet for multiple choice questions in Part A Student number_____________________ Question Answer A 1 A 2 A 3 A 4 A 5 A 6 A 7 A 8 A 9 A 10 A Answer B B B B B B B B B B B Answer C C C C C C C C C C C Answer D D D D D D D D D D D 896N1
Circle the answer you think is correct
Part A: Multiple-choice questions Attempt all questions Two marks for each correct answer (there are no penalty marks) Write your answers on the answer sheet on page 2 of this document Circle the answer you think is correct 1. The forecasted inflation rates for China and Australia are 3% and 5% respectively. The nominal interest rate or yield in the Australian Dollar market (one year sovereign debt) is 9% while the equivalent rate in China is 6%. The spot exchange rate is CNY 6.6807/Australia$. What is the spot exchange rate one year from now? A. CNY 6.5534/Australia$ B. CNY 6.3256/Australia$ C. CNY 5.9868/Australia$ D. CNY 7.1354/Australia$
You are the CFO of South Side Ventures, An Australian domiciled firm, that has debt and equity listed on the Australian Stock Exchange in order to finance its overseas expansion strategy. The Australian corporate tax is 30% and annualized yield on Australian 1 year government bonds is 4.37%. As CFO use the above information to answer the following questions (questions 2 – 6):
2. The standard deviation of South Side Ventures stock is 30%, the standard deviation of