The ________ quote refers to the dollar price of a foreign currency. A) European B) American C) Bid D) Ask ANSWER Answer: B
Date: September 19th, 2020
The CFO at SmithKlone Company receives a lump sum payment from a foreign vendor of 2,000 euros and intends to convert them to US$. When she calls her currency broker, the quote given is €.6250-.6667/US$. What can she expect to realize in US$ from the broker? A) $3,200 B) $3,000 C) $1,250 D) $1,334 […]
Date: September 19th, 2020
The Rumpel Felt Co. was all equity financed. It recently borrowed money and used the funds to repurchase shares. The stock price rose as a result. Which of the following explains the increase in stock price? I. The tax shields generated by the new debt II. A reduction in agency costs due to the interest […]
Date: September 19th, 2020
What is the name of the rate currency traders quote in the interbank market to sell foreign currencies? A) bid-ask spread B) bid rate C) cross rate D) ask rate ANSWER Answer: D
Date: September 19th, 2020
When calculating the EBIT-EPS breakeven point, the interest due under the equity option is: A) The cost of equity X number of equity shares B) Shares outstanding X cost of equity C) Interest rate X number of equity shares D) 0 ANSWER D
Date: September 19th, 2020
A firm’s net income is a true representation of cash flows available to the stockholders. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
What is Sterling Draper Pryce’s quarterly dividend growth rate? The recent dividend history for Sterling Draper Pryce is provided in the table, below. Qtr Ex-Date Div Qtr Ex-Date Div Qtr Ex-Date Div Q1 11/19/03 $0.425 Q4 08/16/06 0.42 Q3 05/13/09 0.46 Q2 02/18/04 $0.425 Q1 11/15/06 0.43 Q4 08/18/09 0.46 Q3 05/19/04 $0.425 Q2 02/14/07 […]
Date: September 19th, 2020
Q9 Networks is a leading provider of outsourced data center infrastructure such as web-servers and data storage. Use the financial information in the table to calculate Q9’s maximum sustainable growth rate. Selected Ratios Q9 Networks Year 5 ROE 0.10% ROA 0.09% Net Profit Margin 0.27% Total Asset Turnover 0.33 Dividend Payout Rate 0% A) 0.09% […]
Date: September 19th, 2020
The difference between the ask rate and the bid rate is known as the A) arbitrage profit. B) dealer’s profit. C) spread. D) bid-ask spread. ANSWER Answer: D
Date: September 19th, 2020
The fourth decimal place in a dealer’s quote in the trade jargon is known as the A) pip. B) round trip. C) spread. D) haircut. ANSWER Answer: A
Date: September 19th, 2020
