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
Ewing Oil has $5B of excess cash and has announced an open market stock repurchase. Prior to the announcement, the stock was trading for $25 per share and there are 2.5B shares outstanding. Assume that the stock repurchase is executed at the pre-repurchase price. Sue Ellen has 100 shares of Ewing Oil. She bought the […]
Date: September 19th, 2020
Sales for a firm are $500,000, cost of goods sold are $400,000, and interest expenses are $20,000. What is the gross profit margin? A) 16.0% B) 20.0% C) 4.0% D) 25.0% E) 30.0% ANSWER B
Date: September 19th, 2020
Two homogeneous products from Germany and Brazil are being purchased by an American trader. The product from Germany is cheaper than the product from Brazil. According to ________, the trader will purchase the products from Germany until the increased demand for the German product equalizes the price. A) Arbitrage B) Purchasing power parity C) Law […]
Date: September 19th, 2020
As long as the flow of currencies is ________, the exchange rate can remain ________. A) out of balance; constant B) equal; in flux C) there is no relationship between the two D) equal; constant ANSWER D
Date: September 19th, 2020
By using a forward transaction, ________ has been transferred from the firm to a speculator in the exchange rate market. A) exchange rate risk B) political risk C) foreign risk D) market risk ANSWER A
Date: September 19th, 2020
365 / Receivables Turnover = A) Payment Period B) Collection Period C) Operating Period D) Receivables Period E) Payables Period ANSWER B
Date: September 19th, 2020
