Tariffs imposed by a foreign government are an example of A) Exchange rate risk B) Foreign risk C) Policy risk D) Political risk ANSWER D
Date: September 19th, 2020
Calculate the APR for an invoice that has the terms 1/20 net 45. A) 14.75% B) 18.80% C) 12.25% D) 15.65% E) 10.35% ANSWER A
Date: September 19th, 2020
Which of the following is a risk unique to businesses practicing business internationally? A) Financial risk B) Investment risk C) Political risk D) Compliance risk ANSWER C
Date: September 19th, 2020
What can companies use to lock in exchange rates to set up a risk-free arbitrage for interest rates? A) Expropriation B) Forward markets C) Counter rates D) Futures contracts ANSWER D
Date: September 19th, 2020
Income Statement CFM Majestic Inc Years 1 & 2 ($000,000s) Year 1 Year 2 Sales 381.9 416.3 COGS 244.9 278.9 SG&A 59.7 63.8 Depreciation 13.8 15.4 R & D 5.3 4.3 EBIT 58.2 53.9 Interest Expense 7.3 7.9 Earnings before Income Tax 50.9 46.0 Income Taxes 17.3 14.8 Net Income 33.6 31.2 Referring to the […]
Date: September 19th, 2020
Futures contracts may help firms hedge against exchange rate risk by A) enabling the hedger to offset foreign currency losses by profiting from the sale of the futures contract. B) giving the owner of the contract the right to swap one currency for another at a later date. C) giving the holder of the contract […]
Date: September 19th, 2020
What is the percentage holding cost per period for a credit with the terms of 2/30 net 60? A) .0101 B) .2787 C) .0667 D) .0204 E) .0352 ANSWER D
Date: September 19th, 2020
What is a usual default rate when looking at bad debt losses? A) 2% B) 3% C) 4% D) 5% E) 6% ANSWER A
Date: September 19th, 2020
A company is offering a discount with terms 3/15 net 40. What is the discount rate associated with this offer? A) 3% B) 15% C) 40% D) 20% E) 5% ANSWER A
Date: September 19th, 2020
Expropriation is another name for: A) Arbitrage B) Hedging C) Parity D) Nationalization ANSWER D
Date: September 19th, 2020
