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
Pearson Hardman Inc. currently has 2 million shares outstanding and earnings per share (EPS) of $6. After a 3-for-2 split, the shares outstanding and EPS will be: A) 1.33 M Shares outstanding, $9 EPS B) 1.50 M Shares outstanding, $6 EPS C) 2.00 M Shares outstanding, $6 EPS D) 3.00 M Shares outstanding, $4 EPS […]
Date: September 19th, 2020
________ ratios measure the efficiency with which assets are converted to sales or cash. A) Liquidity B) Activity C) Profitability D) Market E) Financing ANSWER B
Date: September 19th, 2020
All of the following will increase the cash conversion cycle EXCEPT: A) An increase in accounts receivable B) An increase in inventory C) An increase in costs of goods sold D) An increase in accounts payable ANSWER D
Date: September 19th, 2020
If the dollar appreciates against the Irish punt, A) the U.S. price of Irish goods will rise. B) the U.S. exports to Ireland will fall. C) then the punt also appreciates against the U.S. dollar. D) the U.S. inflation rate will have a tendency to rise. E) the Irish exports to the U.S. should decline. […]
Date: September 19th, 2020
Santa Fe Railway transports industrial products and supplies throughout the Western United States. Selected financial information for Santa Fe is provided in the table below. The CFO of Santa Fe, Richard Pennybags, wants to distribute $1B of cash using an open market stock repurchase. If the shares are bought back at the pre-repurchase price, then […]
Date: September 19th, 2020
Find the return on assets if net income was $55,000, total assets are $115,000, EBIT was $100,000, and equity is $75,000. A) 73.3% B) 63.1% C) 87.0% D) 47.8% E) 55.0% ANSWER D
Date: September 19th, 2020
The cash flows for two projects, A and B, are shown in the table, below. Notice that Project A has a life of 5 years and Project B has a 3 year life. Calculate the NPV of each project and calculate which should be adopted using the equivalent annual annuity approach. Assume that the cost […]
Date: September 19th, 2020
