The ________ states that two identical products produced in two different countries should cost the same to traders in any other country. A) Law of one price B) Relative purchasing power parity C) Absolute purchasing power parity D) Arbitrage ANSWER A
Date: September 19th, 2020
The combined costs of holding inventory are called A) opportunity costs. B) storage costs. C) carrying costs. D) stocking charges. E) maintenance costs. ANSWER C
Date: September 19th, 2020
Shortage costs can be enormous. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
If net income was $10,000, interest expense was $4,000, and taxes were $1,000, what is the operating profit margin if sales were $50,000? A) 28% B) 30% C) 22% D) 10% E) 20% ANSWER B
Date: September 19th, 2020
Central Perk Coffee Co. trades for $0.85 per share and had 100M shares outstanding. It announces that it will execute a reverse-split on a 1-for-4 basis. What price will the stock trade for after the split? A) $0.15 B) $0.85 C) $1.06 D) $2.40 E) $3.40 ANSWER E
Date: September 19th, 2020
In the short run, relative purchasing power parity does not explain changes in exchange rates well. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
At least how much of a typical manufacturing firms assets are tied up in inventory? A) 15% B) 25% C) 10% D) 30% E) 35% ANSWER A
Date: September 19th, 2020
If net income after tax was $10,000, interest expense was $4,000, and taxes were $1,000, what is the net profit margin if sales were $50,000? A) 10% B) 30% C) 22% D) 28% E) 20% ANSWER E
Date: September 19th, 2020
Stark Industries currently trades for $50 per share and has 175M shares outstanding. It announces that it will execute a reverse-split on a 1-for-3 basis. How many shares will be outstanding after the split? A) 52.50 M B) 58.33 M C) 116.67 M D) 175.00 M E) 233.33 M ANSWER B
Date: September 19th, 2020
Each of the following is a factor that affects exchange rates EXCEPT: A) Domestic economy B) Supply and demand of currency C) Relative price of goods D) Returns on international investments in securities ANSWER A
Date: September 19th, 2020
