CH 1 Quiz 1. Suppose your firm invests $100‚000 in a project in Italy. At the time the exchange rate is $1.23= 1.00 Euros. One year later the exchange rate is the same‚ but the Italian government has expropriated your firm’s assets paying only 80‚000 Euros in compensation. This is an example of a. Political risk 2. Country A can produce 10 yards of textiles or 6 pounds of food per unit of input. Compute the opportunity cost of adding one additional unit of food instead of textiles. a. 1 yard
Premium United States dollar Bretton Woods system Foreign exchange market
they were right and other parties should change to suit their preferences. The governors drove strongly about how the EuroMouse project would be a bane to their society and felt that they should be heavily compensated for the trouble they’ve endured. The government official sought to win the support of the people behind the government’s choice of action. The Mouse representative wanted to secure a smooth and hassle free period of construction and setup while acquiring good public relations with the
Premium Cross-cultural communication Culture Intercultural competence
Maximize its expected EPS. c. Minimize the chances of losses. d. Maximize the stock price per share over the long run‚ which is the stock™s intrinsic value. e. Maximize the stock price on a specific target date. 4. Which of the following mechanisms would be most likely to help motivate managers to act in the best interest of shareholders? (Points: 5) a. Decrease the use of restrictive covenants in bond agreements. b. Take actions that reduce the possibility of a hostile takeover. c. Have the board
Premium Corporation Stock Corporate tax
Answer all question (TEST 2) Question 1 a) Smart Corporation has to raise RM5‚000‚000 for its 5-year budget. The corporation has the following three (3) financial sources to be considered: Source I Issue preferred shares that pays 10% dividend on par value of RM100. The current market price of the preferred share is RM75 per share and its floatation cost is at 5% of the par value. Source II Issue bonds that pay 8% interest and mature in ten years. The corporation is planning to sell the
Premium Net present value Time value of money Internal rate of return
Top of Form 1. __________ is concerned with the acquisition‚ financing‚ and management of assets with some overall goal in mind. Financial management Profit maximization Agency theory Social responsibility 2. Jensen and Meckling showed that __________ can assure themselves that the __________ will make optimal decisions only if appropriate incentives are given and only if the __________ are monitored. principals; agents; agents agents; principals; principals
Premium Balance sheet Investment Generally Accepted Accounting Principles
17956069) 2012 sales = 2416595.469 5. A firm is considering two projects‚ and it requires a 12% return on its projects. Their minimum payback period is 2.5 years. Assuming the projects are independent (not mutually exclusive)‚ which would you choose based on the payback method? The NPV? The IRR? Project A Project B Initial outlay $200‚000 Initial outlay $180‚000 Cash flows Year 1 $70‚000 Year 1 $80‚000 Year 2 $80‚000 Year 2 $90‚000
Premium Stock Stock market Preferred stock
Debt is Good for You (01/25/2001) Franco Modigliani and Merton Miller published their famous theory about the optimal balance on debt and equity of the corporate finance. In the Modigliani –Miller theory they stated that the value of the firm is independent of firm’s capital structure. As the portion of debt goes up‚ the firm will be riskier‚ and the expected return will increase. In an efficient market‚ the business risk does not vary with leverage. But later‚ Modigliani –Miller theory modified
Premium Finance Stock market Debt
Marketing Strategies MKTG 601 Campbell Soup Company Intelligent Quisine - Short Case Date: May 30‚ 2006 In 1997‚ Campbell Soup Company launched a new product known as "Intelligent Quisine meals." With consumers in the United States becoming more health conscious and concerned about diet and disease prevention‚ these 24 different IQ meals were targeted toward the health-food product-market. They were designed to assist in lowering consumers’ cholesterol‚ blood pressure and blood sugar
Premium Marketing Nutrition Food
Anatomy of a Spiny Dogfish Shark The dogfish shark has a very complex‚ unique exterior and interior structure. The body shape benefits the shark for its swimming ability and survival necessities‚ while the interior structure ensures correct digestion and proper health. Every specific part plays a key role in the anatomy of the shark. There are three main sections categorized as the head‚ trunk‚ and tail. Located in the head section is the eye‚ spiracle‚ gill slits‚ mouth‚ and nostril. The rostrum
Premium Shark Fish anatomy Organ
To Eat or Not to Eat Introduction: Hello my name is xxxxxxx xxxxxx and I am an Eating Disorder Counselor. Today I will be discussing the physiological reasons for eating or not eating and then I will open the floor for discussion. There are two theories on why we get hungry; these theories are called the Set or Settling Point theory‚ and the other is the Positive – Incentive theory. The Set or Settling theory differs a bit in the point of optimal weight (or fat/energy level) however the
Premium Nutrition