What is the equation for the cash conversion cycle? A) Operating Period + Accounts Payable B) Operating Period × Accounts Payable C) Operating Period – Accounts Payable D) Operating Period / Accounts Payable ANSWER C
Date: September 19th, 2020
In a freely floating exchange rate system, the sale of Japanese cars to the United States will be offset by which item on the US balance of payments? A) a credit on the current account B) a credit on the capital account C) a debit on the trade account D) A or B […]
Date: September 19th, 2020
Ewing Oil repurchased $5.10B worth of shares during the year at an average price of $30. Cliff Barnes owned 0.15B shares in Ewing prior to the repurchase. Cliff decided not to sell any shares during the repurchase. What was Cliff’s proportionate ownership in Ewing following the repurchase? Ewing Oil Inc Selected Financial Information Shares outstanding […]
Date: September 19th, 2020
Purchases and sales of foreign assets by domestic residents would appear in the ________ account of the balance of payments. A) current B) capital C) trade merchandise D) official settlement ANSWER Answer: B
Date: September 19th, 2020
Dinder Mufflin is a Pennsylvania-based paper company. Dinder Mufflin is all equity financed. Its shares are trading for $7.67 and it has 433 million shares outstanding. The company has excess cash of $831.36 million that it wants to distribute using a fixed-price tender offer. It has announced that it will pay $9.60 per share and […]
Date: September 19th, 2020
As the real value of the dollar rises, the balance on the current account is likely to ________. A) increase B) decrease C) stay the same D) move with the capital account adjustments factor ANSWER Answer: B
Date: September 19th, 2020
The Japanese current account surplus can best be attributed to A) the high rate of Japanese domestic investment. B) Japanese protectionism. C) the high rate of Japanese savings. D) government budget deficits. ANSWER Answer: C
Date: September 19th, 2020
Polaris Industries produces a wide range of outdoor leisure vehicles including all-terrain vehicles (ATV’s), motorcycles, and snowmobiles. Use the financial information in the table to calculate Polaris’ maximum sustainable growth rate. Selected Ratios Polaris Industries Inc As of December 31, Year 5 ROE 38.76% ROA 18.63% Net Profit Margin 7.51% Total Asset Turnover 2.48 Dividend […]
Date: September 19th, 2020
The three major accounts of the ________ are the current account, the capital account and the official settlements account. A) balance of payments B) balance of trade C) trade surplus D) trade deficit ANSWER Answer: A
Date: September 19th, 2020
When the yen is selling at a premium in the forward market, the euro price of the yen in the forward market €/¥ would be ________ the spot price of €/¥. A) smaller than B) the same as C) approximately the same as D) larger than ANSWER Answer: D
Date: September 19th, 2020
