Chapter 3 财务管理(英语)作业
财务管理专业英语第三版课后答案
财务管理专业英语第三版课后答案1、I was astonished when I heard that Louise was getting married. [单选题] *A. 惊讶(正确答案)B. 气愤C. 高兴D. 想念2、He usually ________ at 6:30 a.m. [单选题] *A. gets toB. gets up(正确答案)C. gets overD. gets in3、Sitting at the back of the room（）a very shy girl with two bright eyes. [单选题] *A. is(正确答案)B. areC. hasD. there was4、My watch usually _______ good time, but today it is five minutes fast. [单选题] *A. goesB. makesC. keeps(正确答案)D. gains5、Medicines are to be taken according to the doctor’s advice. [单选题] *A. 发放B. 提取C. 配方D. 服用(正确答案)6、Modern plastics can（）very high and very low temperatures. [单选题] *A. stand(正确答案)B. sustainC. carryD. support7、2．The villagers want to have a bridge. Can this dream ________? [单选题] * A．come outB．get awayC．come true(正确答案)D．get out8、--How is your friend coming?--I’m not sure. He _______ drive here. [单选题] *A. may(正确答案)B. canC. mustD. will9、Chinese is one of ____ most widely used languages in ____ world. [单选题] *A. a, theB. /, theC. the, the(正确答案)D. a, /10、94．—Let’s go out for a picnic on Sunday.—________. [单选题] * A．Nice to meet youB．Here you areC．The same to youD．Good idea(正确答案)11、He was born in Canada, but he has made China his _______. [单选题] *A. familyB. addressC. houseD. home(正确答案)12、I couldn’t find Peter,_____did I know where he had gone. [单选题] *A.nor(正确答案)B.eitherC.neverD.as13、If you had told me earlier, I _____ to meet you at the hotel. [单选题] *A. had comeB. will have comeC. would comeD. would have come(正确答案)14、The teacher has his students_____a composition every other week. [单选题] *A.to writeB.writtenC.writingD.write(正确答案)15、In the future, people ______ a new kind of clothes that will be warm when they are cold, and cool when they’re hot.（）[单选题] *A. wearB. woreC. are wearingD. will wear(正确答案)16、--What would you like to say to your _______ before leaving school?--I’d like to say"Thank you very much!" [单选题] *A. workersB. nursesC. waitersD. teachers(正确答案)17、—When are you going to Hainan Island for a holiday? —______ the morning of 1st May.（）[单选题] *A. InB. AtC. On(正确答案)D. For18、93．Welcome ________ our school! [单选题] *A．to(正确答案)B．inC．atD．/19、Across the river（）. [单选题] *A. lies a new built bridgeB.lies a newly built bridge(正确答案)C. a new built bridge liesD.a newly built bridge lies20、28．The question is very difficult. ______ can answer it. [单选题] * A．EveryoneB．No one(正确答案)C．SomeoneD．Anyone21、People always _____ realize the importance of health _____ they lose it. [单选题] *A. not... untilB. don't... until(正确答案)C. /; untilD. /; not until22、40．Star wars is ______ adventure film and it is very interesting. [单选题] *A．aB．an (正确答案)C．theD．/23、11．No one ________ on the island(岛). [单选题] *A．liveB．lives(正确答案)C．livingD．are living24、The manager demanded that all employees _____ on time. [单选题] *A. be(正确答案)B. areC. to beD. would be25、Alice is a ______ girl. She always smiles and says hello to others.（）[单选题] *A. shyB. strictC. healthyD. friendly(正确答案)26、I saw the boy _______?the classroom. [单选题] *A. enter intoB. enter(正确答案)C. to enter intoD. to enter27、The little boy saved his money ______ he could buy his mother a gift on Mother’s Day.（）[单选题] *A. butB. such thatC. in order toD. so that(正确答案)28、He spoke too fast, and we cannot follow him. [单选题] *A. 追赶B. 听懂(正确答案)C. 抓住D. 模仿29、33．Will Mary's mother ______ this afternoon? [单选题] * A．goes to see a filmB．go to the filmC．see a film(正确答案)D．goes to the film30、The story has _______ a lot of students in our class. [单选题] *A. attracted(正确答案)B. attackedC. appearedD. argued。
财务管理Chapter_03
cash flow P V of Cash Flow discount rat e C1 PV r
McGraw Hill/Irwin
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved
3- 16
Short Cuts
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved
3- 18
Annuity Short Cut
Example You agree to lease a car for 4 years at $300 per month. You are not required to pay any money up front or at the end of your agreement. If your opportunity cost of capital is 0.5% per month, what is the cost of the lease?
McGraw Hill/Irwin
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved
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Present Values
Given two dollars, one received a year from now and the other two years from now, the value of each is commonly called the Discount Factor. Assume r1 = 20% and r2 = 7%.
财务管理(英文第十三版)ch 3_sheena
SI = P0(i)(n)
SI: Simple Interest P0: Deposit today (t=0) i: Interest Rate per Period n:Number of Time Periods
Assume that you deposit $1,000 in an account earning 7% simple interest for 2 years. What is the accumulated interest at the end of the 2nd year?
FV1 = P0(1+i)1 FV2 = P0(1+i)2
General Future Value Formula: FVn = P0 (1able I
FVIFi,n is on Table I at the end of the book
TIME allows you the opportunity to postpone consumption and earn INTEREST.
Simple Interest
Interest paid (earned) on only the original amount, or principal, borrowed (lent).
Compound Interest
• Interest paid (earned) on any previous interest earned, as well as on the principal borrowed (lent).
• Interest on Interest
Formula
Present Value
Value today of a future cash
财务管理CHAPTER3(可编辑修改word版)
II. CONCEPTSCHAPTER 3 Working with Financial StatementsSOURCES OF CASHa36. An increase in which one of the following is a source of cash?a.accounts payableb.cashc.inventoryd.fixed assetse.accounts receivableSOURCES OF CASHb37. Which of the following is (are) sources of cash?I.an increase in accounts receivableII. a decrease in common stockIII.an increase in long-term debtIV. a decrease in accounts payablea.I onlyb.III onlyc.II and IV onlyd.I and III onlye.I, II, and IV onlyUSES OF CASHe 38. Which one of the following is a use of cash?a.payment received from a customer on their accountb.sale of inventoryc.decrease in the cash balanced.sale of common stocke.payment to a supplierUSES OF CASHe 39. Which of the following is (are) uses of cash?I.payment of a note payableII.repurchase of common stockIII.granting of credit to a customerIV.sale of a fixed asseta.I onlyb.IV onlyc.II and III onlyd.I and III onlye.I, II, and IIIonlyd 40. Which one of the following is found in the financing activity section of a statementof cash flows?a.fixed asset acquisitionb.depreciationc.increase in accounts receivabled.dividends paid incomea 41. According to the statement of cash flows, an increase in accounts receivable willthe cash flow from activities.a.decrease; operatingb.decrease; financingc.increase; operatingd.decrease; financinge.decrease; investmentSTATEMENT OF CASH FLOWSd 42. Which of the following are types of activities shown on a statement of cash flows?I.investmentII.liquidatingIII.operatingIV.financinga.I and III onlyb.II and IV onlyc.II, III, and IV onlyd.I, III, and IV onlye.I, II, and III onlyCOMMON-SIZE BALANCE SHEETd 43. On a common-size balance sheet, all accounts are shown as a percentage of:a.income; total assets.b.liability; net income.c.asset; sales.d.liability; total assets.e.equity; sales.COMMON-BASE YEAR FINANCIAL STATEMENTa 44. On a common-base year financial statement, all accounts are expressed relative tothe base:a.year amount.b.amount of sales.c.amount of total assets. income. cash flow.RATIO ANALYSISa 45. Which one of the following statements is correct concerning ratio analysis?a. A single ratio is often computed differently by different individuals.b.Ratios do NOT address the problem of size differences among firms.c.There is only a very limited number of ratios which can be used for analyticalpurposes.d.Each ratio has a specific formula that is used consistently by all analysts.e.Ratios can NOT be used for comparison purposes over periods of time.LIQUIDITY RATIOSe 46. Which of the following are liquidity ratios?I.interval measureII.current ratioIII.quick ratio working capital to total assetsa.II and III onlyb.I and II onlyc.II, III, and IV onlyd.I, III, and IV onlye.I, II, III, and IVLIQUIDITY RATIOSc 47. An increase in which one of the following accounts increases a firm’s current ratiowithout affecting its quick ratio?a.accounts payableb.cashc.inventoryd.accounts receivablee.fixed assetsLIQUIDITY RATIOSb 48. A supplier, who requires payment within ten days, is most concerned with whichone of the following ratios when granting credit?a.currentb.cashc.debt-equityd.quicke.total debtLIQUIDITY RATIOSb 49. A firm has an interval measure of 83. This means that the firm must:a.pay its creditors within the next 83 days or go bankrupt.b.get additional financing within the next 83 days or possibly face closing the firm.c.sell all of its common stock in the next 83 days or become privately owned.d.pay a dividend to its shareholders every 83 days.e.pay interest on its debt every 83 days.LONG-TERM SOLVENCY RATIOSd 50. A firm has a total debt ratio of .47. This means that that firm has 47 cents in debtfor every:a.$1 in equity.b.$1 in total sales.c.$1 in current assets.d.$.53 in equity.e.$.53 in total assets.LONG-TERM SOLVENCY RATIOSd51. The long-term debt ratio is probably of most interest to a f irm’s:a.credit customers.b.employees.c.suppliers.d.mortgage holder.e.shareholders.LONG-TERM SOLVENCY RATIOSe52. A banker considering loaning a firm money for ten years would most likely prefer the firm have a debt ratio of and a times interest earned ratio of :a. .75; .75.b. .50; 1.00.c. .45; 1.75.d. .40; 2.50.e. .35; 3.00.LONG-TERM SOLVENCY RATIOSb 53. From a cash flow position, which one of the following ratios best measures a firm’sability to pay the interest on its debts?a.times interest earned ratiob.cash coverage ratioc.cash ratiod.quick ratioe.interval measureASSET MANAGEMENT RATIOSa 54. The higher the inventory turnover measure, t he:a.faster a firm sells its inventory.b.faster a firm collects payment on its sales.c.longer it takes a firm to sell its inventory.d.greater the amount of inventory held by a firm.e.lesser the amount of inventory held by a firm.ASSET MANAGEMENT RATIOSd 55. Which one of the following statements is correct if a firm has a receivables turnovermeasure of 10?a.It takes a firm 10 days to collect payment from its customers.b.It takes a firm 36.5 days to sell its inventory and collect the payment from the sale.c.It takes a firm 36.5 days to pay its creditors.d.The firm has an average collection period of 36.5 days.e.The firm has ten times more in accounts receivable than it does in cash.ASSET MANAGEMENT RATIOSd56. A total asset turnover measure of 1.03 means that a firm has $1.03 i n:a.total assets for every $1 in cash.b.total assets for every $1 in total debt.c.total assets for every $1 in equity.d.sales for every $1 in total assets.e.long-term assets for every $1 in short-term assets.ASSET MANAGEMENT RATIOSe57. If a firm wishes to increase its net working capital turnover rate, it should , all else constant.a.increase its current assetsb.increase its total assetsc.decrease its current liabilitiesd.decrease its total liabilitiese.increase its salesASSET MANAGEMENT RATIOSa 58. Bob’s Toys has a fixed asset turnover rate of 1.2 and a total asset turnover rateof .84. Gerold’s Toys has a fixed asset turnover rate of 1.1 and a total assetturnover rate of .96. Both companies have similar operations. Bob’s Toys:a.is using its fixe d assets more efficiently than Gerold’s Toys.b.is using its total assets more efficiently than Gerold’s Toys.c.is generating $1 in sales for every $1.20 in net fixed assets.d.is generating $1.20 in net income for every $1 in net fixed assets.e.has $.84 in total assets for every $.96 Gerold’s has in total assets.PROFITABILITY RATIOSc 59. Puffy’s Pastries generates five cents of net income for every $1 in sales. Thus,Puffy’s has a of 5 percent.a.return on assetsb.return on equityc.profit margind.Du Pont measuree.total asset turnoverPROFITABILITY RATIOSa 60. If a firm produces a 10 percent return on assets and also a 10 percent return onequity, then the firm:a.has no debt of any kind.b.is using its assets as efficiently as possible.c.has no net working capital.d.also has a current ratio of 10.e.has an equity multiplier of 2.PROFITABILITY RATIOSc 61. If shareholders want to know how much profit a firm is making on their entireinvestment in the firm, the shareholders should look at the:a.profit margin.b.return on assets.c.return on equity.d.equity multiplier.e.earnings per share.PROFITABILITY RATIOSa 62. BGL Enterprises increases its operating efficiency such that costs decrease whilesales remain constant. As a result, given all else constant, the:a.return on equity will increase.b.return on assets will decrease.c.profit margin will decline.d.equity multiplier will decrease.e.price-earnings ratio will increase.PROFITABILITY RATIOSd63. The only difference between Joe’s and Moe’s is that Joe’s has old, fully depreciated equipment. Moe’s just purchased all new equipment which will be depreciated overeight years. Assuming all else equal:a.Joe’s will have a lower profit margin.b.Joe’s will have a lower return on equity.c.Moe’s will have a higher net income.d.Moe’s will have a lower profit margin.e.Moe’s will have a higher return on assets.MARKET VALUE RATIOSe64. Last year, Alfred’s Automotive had a price-earnings ratio of 15. This year, the price earnings ratio is 18. Based on this information, it can be stated with certainty that:a.the price per share increased.b.the earnings per share decreased.c.investors are paying a higher price for each share of stock purchased.d.investors are receiving a higher rate of return this year.e.either the price per share, the earnings per share, or both changed.MARKET VALUE RATIOb 65. Turner’s Inc. has a price-earnings ratio of 16. Alfred’s Co. has a price-earningsratio of 19. Thus, you can state with certainty that one share of stock in Alfred’s:a.has a higher market price than one share of stock in Turner’s.b.has a higher market price per dollar of earnings than does one share of Turner’s.c.sells at a lower price per share than one share of Turner’s.d.represents a larger percentage of firm ownership than does one share of Turner’sstock.e.earns a greater profit per share than does one share of Turner’s stock.MARKET VALUE RATIOSb 66. Which two of the following are most apt to cause a firm to have a higher price-earnings ratio?I.slow industry outlookII.high prospect of firm growthIII.very low current earningsIV.investors with a low opinion of the firma.I and II onlyb.II and III onlyc.II and IV onlyd.I and III onlye.III and IV onlyMARKET VALUE RATIOSd 67. Vinnie’s Motors has a market-to-book ratio of 3. The book value per share is $4.00.This means that a $1 increase in the book value per share will:a.cause the accountants to increase the equity of the firm by an additional $2.b.increase the market price per share by $1.c.increase the market price per share by $12.d.tend to cause the market price per share to rise.e.only affect book values but not market values.MARKET VALUE RATIOSd 68. Which one of the following sets of ratios applies most directly to shareholders?a.return on assets and profit marginb.quick ratio and times interest earnedc.price-earnings ratio and debt-equity ratiod.market-to-book ratio and price-earnings ratioe.cash coverage ratio and times equity multiplierDU PONT IDENTITYb 69. The three parts of the Du Pont identity can be generally described as:I.operating efficiency, asset use efficiency and firm profitability.II.financial leverage, operating efficiency and asset use efficiency.III.the equity multiplier, the profit margin and the total asset turnover.IV.the debt-equity ratio, the capital intensity ratio and the profit margin.a.I and II onlyb.II and III onlyc.I and IV onlyd.I and III onlye.III and IV onlyDU PONT IDENTITYe 70. If a firm decreases their operating costs, all else constant, then:a.the profit margin increases while the equity multiplier decreases.b.the return on assets increases while the return on equity decreases.c.the total asset turnover rate decreases while the profit margin increases.d.both the profit margin and the equity multiplier increase.e.both the return on assets and the return on equity increase.b71. Which one of the following statements is correct?a.Book values should always be given precedence over market values.b.Financial statements are frequently the basis used for performance evaluations.c.Historical information has no value when predicting the future.d.Potential lenders place little value on financial statement information.e.Reviewing financial information over time has very limited value.c72. It is easier to evaluate a firm using their financial statements when the firm:a.is a conglomerate.b.is global in nature.es the same accounting procedures as other firms in their industry.d.has a different fiscal year than other firms in their industry.e.tends to have one-time events such as asset sales and property acquisitions.EVALUATING FINANCIAL STATEMENTSa 73. Which two of the following represent the most effective methods ofdirectly evaluating the financial performance of a firm?paring the current financial ratios to those of the same firm from prior timeperiodsparing a firm’s financial ratios to those of other firms in the firm’s peer group who have similar operationsparing the financial statements of the firm to the financial statements of similar firms operating in other countriesparing the financial ratios of the firm to the average ratios of all firms located in the same geographic areaa.I and II onlyb.II and III onlyc.III and IV onlyd.I and IV onlye.I and III onlyEVALUATING FINANCIAL STATEMENTSe 74. Which of the following represent problems encountered when comparing the financialstatements of one firm with those of another firm?I.Either one, or both, of the firms may be conglomerates and thus have unrelatedlines of business.II.The operations of the two firms may vary geographically.III.The firms may use differing accounting methods for inventory purposes.IV.The two firms may be seasonal in nature and have different fiscal year ends.a.I and II onlyb.II and III onlyc.I, III, and IV onlyd.I, II, and III onlye.I, II, III, and IVIII.PROBLEMSSOURCES AND USES OF CASHd 75. Last year Ty’s Grocery had inventory of $237,500 and fixed assets of $51,400. Thisyear, Ty’s has inventory of $231,900 and fixed assets of $48,700. Depreciation for thisyear is $6,300. Which one of the following statements is true given this information?a.Both inventory and fixed assets are uses of cash in the amounts of $5,600 and $3,600,cash respectively.b.Both inventory and fixed assets are uses of cash in the amounts of $5,600 and$2,700, respectively.c.Inventory is a source of cash in the amount of $5,600 and fixed assets is a use ofin the amount of $2,700.d.Inventory is a source of cash in the amount of $5,600 and fixed assets is a use of cash in the amount of $3,600.e.Both inventory and fixed assets are sources of cash in the amounts of $5,600 and$3,600 respectively.SOURCES AND USES OF CASHb76. During the year, Doug’s Bakery decreased their accounts receivable by $50, increasedtheir inventory by $100, and decreased their accounts payable by $50. For these three accounts, the firm has a net:a.$200 use of cash.b.$100 use of cash.c.$0 use of cash.d.$100 source of cash.e.$200 source of cash.SOURCES AND USES OF CASHc77. A firm generates net income of $530. The depreciation expense is $60 and dividends$30, cashpaid are $80. Accounts payable decrease by $40, accounts receivable decrease byinventory increases by $20, and net fixed assets decrease by $40. What is the netfrom operating activity?a. $480b. $530c. $560d. $580e. $600COMMON-SIZE STATEMENTSb 78. A firm has sales of $1,200, net income of $200, net fixed assets of $500, and currentassets of $300. The firm has $100 in inventory. What is the common-size statementvalue of inventory?a.8.3 percentb.12.5 percentc.20.0 percentd.33.3 percente.50.0 percentCOMMON-SIZE STATEMENTSa 79. A firm has sales of $1,500, net income of $100, total assets of $1,000, and total equityof $700. Interest expense is $50. What is the common-size statement value of theinterest expense?a. 3.3 percentb. 5.0 percentc.7.1 percentd.16.7 percente.50.0 percentCOMMON-BASE YEAR STATEMENTSe 80. Last year, which is used as the base year, a firm had cash of $60, accounts receivableWhat is of $100, inventory of $200, and fixed assets of $500. This year the firm has cash of $50, accounts receivable of $150, inventory of $250, and fixed assets of $550.the common-base year value of accounts receivable?a. .12b. .15c. .67d. 1.16e. 1.50LIQUIDITY RATIOSb 81. Jessica’s Boutique has cash of $50, accounts receivable of $60, accounts payable of$200, and inventory of $150. What is the value of the quick ratio?a. .30b. .55c. .77d. 1.30e. 1.82LIQUIDITY RATIOSa 82. Sing Lee’s has accounts payable of $300, inventory of $250, cash of $50, fixed assetsvalue ofof $500, accounts receivable of $200, and long-term debt of $400. What is thethe net working capital to total assets ratio?a. .20b. .33c. .40d. .50e. .67LIQUIDITY RATIOSa 83. A firm has total assets of $2,640 and net fixed assets of $1,500. The average dailyoperating costs are $170. What is the value of the interval measure?a. 6.71b. 8.82c. 11.03d. 13.33e. 15.53LONG-TERM SOLVENCY RATIOSa 84. A firm has a debt-equity ratio of .40. What is the total debt ratio?a. .29b. .33c. .67d. 1.40e. 1.50LONG-TERM SOLVENCY RATIOSA firm has total debt of $1,200 and a debt-equity ratio of .30. What is the value of e 85.thetotal assets?a. $1,560b. $3,000c. $3,600d. $4,000e. $5,200LONG-TERM SOLVENCY RATIOS86. A firm has sales of $3,600, costs of $2,800, interest paid of $100, and depreciation dof$400. The tax rate is 34 percent. What is the value of the cash coverage ratio?a. 2b. 4c. 6d. 8e. 10LONG-TERM SOLVENCY RATIOSd 87. Rosita’s Resources paid $250 in interest and $130 in dividends last year. The timesinterest earned ratio is 3.8 and the depreciation expense is $60. What is the value of thecash coverage ratio?a. 2.40b. 3.52c. 3.80d. 4.04e. 4.28ASSET MANAGEMENT RATIOSc88. Mario’s Home Systems has sales of $2,800, costs of goods sold of $2,100, inventory of$500, and accounts receivable of $400. How many days, on average, does it takeMario’s to sell their inventory?a.65.2 daysb.85.2 daysc.86.9 daysd.96.9 dayse.117.3 daysASSET MANAGEMENT RATIOSd89. Syed’s Industries has accounts receivable of $700, inventory of $1,200, sales of $4,200, and cost of goods sold of $3,400. How long does it take Syed’s to both selltheir inventory and then collect the payment on the sale?a.128 daysb.146 daysc.163 daysd.190 dayse.211 daysASSET MANAGEMENT RATIOSb 90. A firm has net working capital of $400, net fixed assets of $2,400, sales of $6,000, andcurrent liabilities of $800. How many dollars worth of sales are generated from every$1 in total assets?a. $1.33b. $1.67c. $1.88d. $2.33e. $2.50ASSET MANAGEMENT RATIOSd 91. Freda’s, Inc. has sales of $3,200, current liabilities of $900, total assets of $3,000, andnet working capital of $500. How many dollars worth of sales are generated fromevery $1 in net fixed assets?a. $.91b. $1.07c. $1.67d. $2.00e. $2.29PROFITABILITY RATIOSb92. Rosita’s Restaurante has sales of $4,500, total debt of $1,300, total equity of$2,400,and a profit margin of 5 percent. What is the return on assets?a. 5.00 percentb. 6.08 percentc.7.39 percentd.9.38 percente.17.31 percentPROFITABILITY RATIOSc93. Lee Sun’s has sales of $3,000, total assets of $2,500, and a profit margin of 5 percent.The firm has a total debt ratio of 40 percent. What is the return on equity?a. 6 percentb.8 percentc.10 percentd.12 percente.15 percentMARKET VALUE RATIOSd94. Jupiter Explorers has $6,400 in sales. The profit margin is 4 percent. There are6,400shares of stock outstanding. The market price per share is $1.20. What is the price- earnings ratio?a.13b.14c.21d.30e.48MARKET VALUE RATIOSc95. Patti’s has net income of $1,800, a price-earnings ratio of 12, and earnings per share of$1.20. How many shares of stock are outstanding?a. 1,200b. 1,400c. 1,500d. 1,600e. 1,800MARKET VALUE RATIOSd96. A firm has 5,000 shares of stock outstanding, sales of $6,000, net income of $800, a price-earnings ratio of 10, and a book value per share of $.50. What is the market- to-book ratio?a. 1.6b. 2.4c. 3.0d. 3.2e. 3.6DU PONT IDENTITYc97. Frederico’s has a profit margin of 6 percent, a return on assets of 8 percent, and an equity multiplier of 1.4. What is the return on equity?a. 6.7 percentb.8.4 percentc.11.2 percentd.14.6 percente.19.6 percentDU PONT IDENTITYd98. Samuelson’s has a debt-equity ratio of 40 percent, sales of $8,000, net income of $600,and total debt of $2,400. What is the return on equity?a. 6.25 percentb.7.50 percentc.9.75 percentd.10.00 percente.11.25 percentDU PONT IDENTITYa 99. A firm has a return on equity of 15 percent. The debt-equity ratio is 50 percent. Thetotal asset turnover is 1.25 and the profit margin is 8 percent. The total equity is $3,200. What is the amount of the net income?a. $480b. $500c. $540d. $600e. $620The following balance sheet and income statement should be used for questions #100 through #110:Windswept, Inc.2005 Income Statement($ in millions)Net sales $8,450Less: Cost of goods sold 7,240Less: Depreciation 400Earnings before interest and taxes 810Less: Interest paid 70Taxable Income $ 740Less: Taxes 259Net income $ 481Windswept, Inc.2004 and 2005 Balance Sheets($ in millions)2004 2005 2004 2005Cash $ 120 $ 140 Accounts payable $1,110 $1,120Accounts rec. 930 780 Long-term debt 840 1,210Inventory 1,480 1,520 Common stock 3,200 3,000Total $2,530 $2,440 Retained earnings 530 710Net fixed assets 3,150 3,600Total assets $5,680 $6,040 Total liabilities& equity $5,680 $6,040LIQUIDITY RATIOSa100. What is the quick ratio for 2005?a. .82b. .95c. 1.36d. 2.18e. 2.28ASSET MANAGEMENT RATIOSb101. What is the days’ sales in receivables? (use 2005 values)a.31.8 daysb.33.7 daysc.38.4 daysd.41.9 dayse.47.4 daysASSET MANAGEMENT RATIOSd 102. What is the fixed asset turnover? (use 2005 values)a. 1.4b. 1.7c. 2.1d. 2.3e. 2.6FINANCIAL LEVERAGE RATIOSa 103. What is the equity multiplier for 2005?a. 1.6b. 1.8c. 2.0d. 2.3e. 2.5FINANCIAL LEVERAGE RATIOSd 104. What is the cash coverage ratio for 2005?a. 11.6b. 12.8c. 13.7d. 17.3e. 18.8PROFITABILITY RATIOSc105. What is the return on equity for 2005?a. 5.7 percentb. 6.8 percentc.13.0 percentd.15.3 percente.16.0 percentPROFITABILITY RATIOSd106. Windswept, Inc. has 90 million shares of stock outstanding. Their price-earnings ratio for 2005 is 12. What is the market price per share of stock?a. $57.12b. $59.94c. $62.82d. $64.13e. $65.03STATEMENT OF CASH FLOWSb 107. What amount should be included in the financing section of the 2005 statement ofcash flows for dividends paid?a.$180 millionb.$301 millionc.$481 milliond.$530 millione.$710 millionSTATEMENT OF CASH FLOWSe108. What is the amount of the net cash from investment activity for 2005?a.-$50 millionb.$250 millionc.$450 milliond.$700 millione.$850 millionSTATEMENT OF CASH FLOWSd 109. What is the net change in cash during 2005?a.-$40 millionb.-$20 millionc.$0d.$20 millione.$40 millionSTATEMENT OF CASH FLOWSa 110. How will accounts payable appear on the 2005 statement of cash flows?a.increase of $10 million in cash from an operating activityb.decrease of $10 million in cash from an operating activityc.increase of $10 million in cash from an investment activityd.decrease of $10 million in cash from a financing activitye.increase of $10 million in cash from a financing activityThe following balance sheet and income statement should be used for questions #111 through #121:Bayside Inc.2005 Income Statement($ in thousands)Net sales $5,680Less: Cost of goods sold 4,060Less: Depreciation 420Earnings before interest and taxes 1,200Less: Interest paid 30 TaxableIncome $1,170Less: Taxes 410Net income $ 760Bayside, Inc.2004 and 2005 Balance Sheets($ in thousands)2004 2005 2004 2005Cash $ 70 $ 180 Accounts payable $1,350 $1,170Accounts rec. 980 840 Long-term debt 720 500Inventory 1,560 1,990 Common stock 3,200 3,500Total $2,610 $3,010 Retained earnings 940 1,200Net fixed assets 3,600 3,360Total assets $6,210 $6,370 Total liabilities& equity $6,210 $6,370LIQUIDITY RATIOSc 111. What is the net working capital to total assets ratio for 2005?a.18.4 percentb.21.9 percentc.28.9 percentd.31.0 percente.47.3 percentASSET MANAGEMENT RATIOSe 112. How many days on average does it take Bayside to sell their inventory? (Use 2005values)a.126.1 daysb.127.9 daysc.153.8 daysd.176.5 dayse.178.9 daysASSET MANAGEMENT RATIOSd 113. How many dollars of sales are being generated from every dollar of fixed assets?(use 2005 values)a. $.59b. $.89c. $1.02d. $1.69e. $1.76FINANCIAL LEVERAGE RATIOSc 114. What is the debt-equity ratio for 2005?a.22.5 percentb.26.2 percentc.35.5 percentd.45.1 percente.47.7 percentFINANCIAL LEVERAGE RATIOSc 115. What is the times interest earned ratio for 2005?a.30b.36c.40d.50e.54FINANCIAL LEVERAGE RATIOSb 116. What is the equity multiplier for 2005?a. 1.21b. 1.36c. 1.44d. 1.82e. 1.91PROFITABILITY RATIOSa 117. What is the return on equity for 2005?a.16.2 percentb.20.9 percentc.21.7 percentd.22.1 percente.23.3 percentSTATEMENT OF CASH FLOWSc 118. What is the net cash flow from investment activity for 2005?a.-$320 thousandb.-$240 thousandc.$180 thousandd.$240 thousande.$660 thousandSTATEMENT OF CASH FLOWSe 119. How does inventory affect the statement of cash flows for 2005?a. a use of $430 thousand of cash as an investment activityb. a source of $430 thousand of cash as an operating activityc. a use of $400 thousand of cash as a financing activityd. a source of $400 thousand of cash as an investment activitye. a use of $430 thousand of cash as an operating activitySTATEMENT OF CASH FLOWSc120. How does the long-term debt affect the statement of cash flows for 2005?a. a source of $500 thousand of cash as a financing activityb. a use of $500 thousand of cash as an operating activityc. a use of $220 thousand of cash as a financing activityd. a source of $220 thousand of cash as financing activitye. a source of $220 thousand of cash as an operating activity。
财务管理双语课程作业(英文题目)
财务管理双语课程作业(英文题目)Book Values versus Market Values Understand accounting rules, it is possible for a company’s liabilities to exceed its assets. When this occurs, the owner’s equity is negative. Can this happen with market values? Why or why not?Financial Ration Analysis A financial ratio by itself tells us little about a company since financial ratios vary a great deal across industries. There are two basic methods for analyzing financial ratios for a company: time trend analysis and peer group analysis. Why might each of these analysis methods be useful? What does each tell you about the company’s financial health?Present Value Suppose two athletes sign 10-year contracts for $80 million. In one case, we’re told that the $80 million will be paid in 10 equal installments. In the other case, we’re told that the$80 million will be paid in 10 installments, but the installments will increase by 5 percent per year. Who got the better deal?Bond Prices versus Yieldsa.What is the relationship between the price of a bond and its YTM?b.Explain why some bonds sell at a premium over par value while other bonds sell at adiscount. What do you know about the relationship between the coupon rate and the YTM for premium bonds? What about for discount bonds? For bonds selling at par value?c.What is the relationship between the current yield and YTM for premium bonds?For discount bonds? For bonds selling at par value?Dividend Growth Model Under what two assumptions can we use the dividend growth model presented in the chapter to determine the value of a share of stock ? Comment on the reasonableness of these assumptions.6：Chapter 7, P193,Payback and Internal Rate of Return A project has perpetual cash flows of c per period, a cost of l, and a required return of R. Please defining: a)Payback periodb)Internal rate of returnc)Net present valueWhat is the relationship between the project’s payback and its IRR? What implications does your answer have for long-lived projects with relatively constant cash flows？7：Chapter8, P214, Q2Incremental Cash Flows Which of the following should be treated as an incremental cash flow when computing the NPV of an investment?a. A reduction of the sales of a company’s other products caused by the investment.b.An expenditure on plant and equipment that has not yet been made and will bemade only if the project is accepted.c.Costs of research and development undertaken in connection with the productduring the past three years.d.Annual depreciation expense from the investment.e.Dividend payments by the firm.f.The resale value of plant and equipment at the end of the project’s life.g.Salary and medical costs for production personnel who will be employed only if theproject is accepted.8：Chapter 8,Year 1 Year 2 Year 3 Year 4 Sales 7,000 7,000 7,000 7,000 Costs 2,000 2,000 2,000 2,000 Depreciation 2,500 2,500 2,500 2,500 EBTTax 850 850 850 850 Net incomeOCF 0Capital spending 10,000 0 0 0 0 Net WorkingCaptial –200 –250 –300 –200 950 Incremental cashflowb) Calculate the NPVc) Calculate the IRRd) Critically evaluate this project.9：Chapter 9,A company investment 1,500,000(＄) to a project in the first year, and the project canbe operated about 5 years. The revenue and the variable costs each year of thePessimistic Expected OptimisticRevenue 2,783,000 3,600,000 4,387,500 Variable costs 1,742,400 2,100,000 2,386,800 Fixed costs 850,000 800,000 750,000 Depreciation 300,000 300,000 300,000 EBTTax –43,760 160,000 380,280 Net incomeOCFSML Cost of Equity Estimation What are the advantages of using the SML approach to finding the cost of equity capital? What are the disadvantages? What are the specific pieces of information needed to use this method? Are all of these variable observable, or do they need to be estimated? What are some of the ways in which you could get these estimates?Efficient Market Hypothesis For each of the following scenarios, discuss whether profit opportunities exist from trading in the stock of the firm under the conditions that (1) the market is not weak form efficient, (2) the market is weak form but not semistrong form efficient, (3) the market is semistrong form but not strong form efficient, and (4) the market is strong form efficient.a.The stock price has risen steadily each day for the past 30 days.b.The financial statement for a company were released three days ago, and you believeyou’ve uncovered some anomalies in the company’s inventory and cost control reporting techniques that are causing the firm’s true liquidity strength to be understated.c.You observe that the senior management of a company has been buying a lot of thecompany’s stock on the open market over the past week.Use the following information for the next two questions:Technical analysis is a controversial investment practice. Technical analysis covers a wide array of techniques, which are all used in an attempt to predict the direction of a particular stock, or the market. Technical analysts look at two major types of information: historical stock prices and investor sentiment. A technical analyst would argue these two information sets provide information on the future direction of a particular stock, or the market as a whole.12：Chapter 15, P394, Q4Cost of debt What steps can stockholders take to reduce the cost of debt?13：Chapter 17, P448, Q3Sources and uses For the year just ended, you have gathered the following information on the Holly Corporation:a. A $200 dividend was paid.b.Accounts payable increased by $500.c.Fixed asset purchases were $900.d.Inventories increased by v625.e.Long-term debt decreased by $1,200.Label each as a source or use of cash and describe its effect on the firm’s cash balance.。
财务管理课后答案第三章.docx
Chapter 3Discussion Questions3-1. If we divide users of ratios into short-term lenders, long-term lenders, andstockholders, in which ratios would each group be most interested, and for whatreasons?Short-term lenders-Iiquidity ratios because their concern is with the firm's ability topay short-term obligations as they come due.Long-term lenders-leverage ratios because they are concerned with the relationshipof debt to total assets- They also will examine profitability to insure that interestpayments can be made・Stockholders-profitability ratios, with secondary consideration given to debtutilization, liquidity, and other ratios. Since stockholders are the ultimate owners ofthe firm, they are primarily concerned with profits or the return on their investment. 3-2. Explain how the Du Pont system of analysis breaks down return on assets. Also explain how it breaks down return on stockholders' equity.The Du Pont system of analysis breaks out the return on assets between the profitmargin and asset turnover.Return on Assets 二Profit Margin x Asset TurnoverNet income Net income Sales = xTotal assets Sales Total assetsIn this fashion, we can assess the joint impact of profitability and asset turnover onthe overall return on assets. This is a particularly useful analysis because we candetermine the source of strength and weakness for a given firm. For example, acompany in the capital goods industry may have a high profit margin and a low assetturnover, while a food processing firm may suffer from low profit margins, but enjoya rapid turnover of assets.The modified form of the Du Pont formula shows:“• Return on assets (investment)Return on equity = ---------- r-~. 丄----------- ；-----M)(1-Debt/Assets)This indicates that return on stockholders' equity may be influenced by return onassets, the debt-to-assets ratio or a combination of both. Analysts or investorsshould be particularly sensitive to a high return on stockholders9 equity that isinfluenced by large amounts of debt.3-3. If the accounts receivable turnover ratio is decreasing, what will be happening to the average collection period?If the accounts receivable turnover ratio is decreasing, accounts receivable will beon the books for a longer period of time. This means the average collection periodwill be increasing.3-4. What advantage does the fixed charge coverage ratio offer over simply using times interest earned?The fixed charge coverage ratio measures the finrTs ability to meet all fixedobligations rather than interest payments alone, on the assumption that failure tomeet any financial obligation will endanger the position of the firm.3-5.Is there any validity in rule-of-thumb ratios for all corporations, for example, acurrent ratio of 2 to 1 or debt to assets of 50 percent?No rule-of-thumb ratio is valid for all corporations- There is simply too muchdifference between industries or time periods in which ratios are computed.Nevertheless, rules-of-thumb ratios do offer some initial insight into the operationsof the firm, and when used with caution by the analyst can provide information.3-6. Why is trend analysis helpful in analyzing ratios?Trend analysis allows us to compare the present with the past and evaluate ourprogress through time. A profit margin of 5 percent may be particularly impressiveif it has been running only 3 percent in the last ten years. Trend analysis must alsobe compared to industry patterns of change.3-7. Inflation can have significant effects on income statements and balance sheets, and therefore on the calculation of ratios. Discuss the possible impact of inflation on thefollowing ratios, and explain the direction of the impact based on yourassumptions.a.Return on investment.b.Inventory turnoverc.Fixed asset turnover.d.Debt-to-assets ratio.r • Net income a. Return on investment = ----------------- Total assets Inflation may cause net income to be overstated and total assets to be understated causing an artificially high ratio that is misleading. S ales b ・ Inventory turnover = Inventory In flation may cause sales to be overstated. If the firm uses FIFO accounting, inventory will also reflect "inflation-influenced^ dollars and the net effect will be nil. If the firm uses LIFO accounting, inventory will be stated in old dollars and too high a ratio could be reported. Fixed assets will be understated relative to their replacement cost and to sales and too high a ratio could be reported.Since both are based on historical costs, no major inflationary impact will take place in the ratio. What effect will disinflation following a highly inflationary period have on thereported income of the firm?Disinflation tends to lower reported earnings as inflation-induced income is squeezedout of the firm 5s income statement. This is particularly true for firms in highlycyclical industries where prices tend to rise and fall quickly.Why might disinflation prove to be favorable to financial assets?Because it is possible that prior inflationary pressures will no longer seriously impairthe purchasing power of the dollar, lessening inflation also means that the requiredreturn that investors demand on financial assets will be going down, and with thislower demanded return, future earnings or interest should receive a higher currentevaluation.c. Fixed asset turnover = Sales Fixed assets d. Debt to total assets = Total debt Total assets 3-8.Comparisons of income can be very difficult for two companies even though they sell 3-10.the same products in equal volume. Why?There are many different methods of financial reporting accepted by the accountingprofession as promulgated by the Financial Accounting Standards Board. Thoughthe industry has continually tried to provide uniform guidelines and procedures,many options remain open to the reporting firm. Every item on the incomestatement and balance sheet must be given careful attention. Two apparently similarfirms may show different values for sales, research and development, extraordinarylosses, and many other items.Chapter 3Problems1. Griffey Junior Wear, Inc., has $800,000 in assets and $200,000 of debt. It reports netincome of $100,000.a.What is the return on assets? b. What is the return on stockholders 9 equity?3-1. Solution:Griffey Junior Wear$800,000a. Return on assets (investment)=Net income Total assetsb. Return on equity =Net income Stockholders' equityDebt/Ass 如沁四= 25%$800,000 Return on equity = 4 (1-.25)Stockholders 1 equity = total assets 一 total debt=$800,000 — $200,000 = $600,000 Net income Stockholders equityReturn on equity = Return on assets (investment) (1- Debt/Assets) 12.5%.75 = 16.67%2.Hugh Snore Bedding, Inc., has assets of $400,000 and turns over its assets 1.5 times per year.Return on assets is 12 percent. What is its profit margin (return on sales)?3-2. Solution:Hugh Snore Bedding, Inc.Sales = Assets x total asset turnover= $400,000x1.5%=$600,000Net income = Assets x Return on assets$48,000 = $400,000x12%Net income = $48,000 / $600,000 = 8% Sales3 One-Size-Fits-All Casket Co/s income statement for 2008 is as follows:Sales ............................................................................................. $3,000,000Cost of goods sold ......................................................................... 2,100,000Gross profit ...................................................................................... 900,000Selling and administrative expense .............................................. 450、000Operating profit ................................................................................ 450,000Interest expense .............................................................................. 75、000Income before taxes ......................................................................... 375,000Taxes (30%) ..................................................................................... 112,500Income after taxes .......................................................................... $262,500pute the profit margin for 2008-b.Assume in 2009, sales increase by 10 percent and cost of goods sold in creases by 25%. Thefirm is able to keep all other expenses the same. Once again, assume a tax rate of 30 percent on income before taxes. What are income after taxes and the profit margin for 2009?b. Sales .......................................................................... $3,300,000*Cost of goods sold............................................... 2,625,000**Gross profit .................................................................... 675,000 Selling and administrative expense ............................... 450Q00 Operating profit ................................................... 225,000Interest expense ................................................................ 75,000 Income before taxes ....................................................... 150,000 Taxes (30%) ..................................................................... 45,000 Income after taxes (2008) ............................................ $105,000 * $3,000,000 x 1.10 = $3,300,000** $2,100,000 x 1.25 = $2,625,000Profit Margin for 2009Net Income _ $105,000 _ 3 冷屮Sales — $3,300,000 一 ’ °3-3. Solution:One Size-Fits-All Casket Co.a. Profit margin for 2008 Net IncomeSales曲54 Using the Du Pont method, evaluate the effects of the following relationships for the ButtersCorporation.a. Butters Corporation has a profit margin of 7 percent and its return on assets (investment) is25.2 percent. What is its assets turnover?b. If the Butters Corporation has a debt-to-total-assets ratio of 50 percent, what would the firm 5sreturn on equity be?c. What would happen to return on equity if the debt-to-total-assets ratio decreased to 35percent?3-4. Solution:Butters Corporationa. Profit margin xTotal asset turnover = Return on asset (investment) 7% x ? =25.2%丁 .25.2% Total asset turnover = --------- 7% =3.6x Return on assets (investment) 25.2%"(1-0.50) _ 25.2% 0.50=50.40%b. Return on equity =(1 - Debt/Asse ts)3-14. (Continued)“. Return on assets (investment)c.Return on equity = -----------------------------------------(1 - Debt/Asse ⑸_ 25.2%一(1-.35)_ 25.2%0.65= 38.77%5. Assume the following data for Interactive Technology and Silicon Software.InteractiveTechnology (IT)Silicon Software (SS) Net income ............................ …$ 15,000$ 50,000 Sales ...................................... •- 150,000 1,000,000 Total assets ............................… 160,000400,000 Total debt ..............................… 60,000240,000 Stockholders 9 equity ............. .… 100,000160,000a. Compute return on stockholders' equity for both firms using ratio 3a in the text. Which firm has the higher return?b. Compute the following additional ratios for both firms.Net income/SalesNet income/Total assets Sales/Total assets Debt/Total assetsc. Discuss the factors from part b that added or detracted from one firm having a higher returnon stockholders^ equity than the other firm as computed in part a.3-5. SolutionInteractive Technology and Silicon SoftwareSilicon Software (SS) has a much higher return on stockholders 9equity than Interactive Technology (IT).a.Interactive Silicon Technology (IT)Software (SS) Net incomeStockholders* equity$15,000$100,000 = 15%$50,000$160,000 = 31.25%3-5. (Continued)b.InteractiveTechnology (IT) Net income _ $15,000 _ ~~Sales-$150,000 ~°Net income $15,000--------------- = ------------- =9.3 /% Total assets $160,000c. As previously indicated, Silicon Software (SS) has a substantially higher return on stockholder^ equity than Interactive Technology (IT). The reason is certainly not to be found on return on the sales dollar where Interactive Technology has a higher return than Silicon Software (10% vs. 5%). However, Silicon Software has a higher return than InteractiveTechnology on total assets (12.5% versus 9.37%). The reason is clearly to be found in total asset turnover, which strongly favors SiliconSoftware over Interactive Technology (2.5x versus ・937x). This factor alone leads to the higher return on total assets.SiliconSoftware (SS) $50,00° 二 5% $1,000,000 0 时°°° =12.5% $400,000 Sales Total assets $150,000 $160,000= .937x $1,000,000 $400,000 =2.5xDebtTotal assets$240,000$400,000 = 60%2007 and 2008:20072008 Sales ......................................... $8,000,000 $10,000,000 Cost of goods sold ..................... 6,000,000 9,000,000 Inventory ....................................800,0001,000,000a. Compute inventory turnover based on ratio number 6, Sales/Inventory, for each year.b. Compute inventory turnover based on an alternative calculation that is used by many financial analysts, Cost of goods sold/Inventory, for each year.c. What conclusions can you draw from part a and part /??3-6. Solution:Perez Corporation20072008b Cost of goods sold _ $6,000,000 氷 $9,000,000 _Inventory 800,0001,000,000c. Based on the sales to inventory ratio, the turnover has remainedconstant at lOx. However, based on the cost of goods sold to inventory ratio, it has improved from 7.5x to 9x.The latter ratio may be providing a false picture of improvement in this example simply because cost of goods sold has gone up as percentage of sales (from 75 percent to 90 percent)・ Inventory is not really turning over any faster ・a.Sales $& 000,000 1 _---------------- — --------------------- --Inventory & 00,000$10,000,0001,000,000 =lOx7.The balance sheet for Stud Clothiers is shown below. Sales for the year were $2,400,000, with90 percent of sales sold on credit.STUD CLOTHIERSBalance Sheet 200XAssets Liabilities and Equity Cash ............................... • $ 60,000Accounts payable ....................... $ 220.000Accounts receivable ....... 240,000 Accrued taxes ............................. 30,000Inventory ........................ 350,000 Bonds payable(long-term) ................................. 150,000 Plant and equipment ....... . 410.000 Common stock ........................... 80,000Paid-in capital .............................. 200,000Retained earnings ........................ 380.000Total assets ............... .$1.060.000 Total liabilities and equity..•$l・060・000Compute the following ratios:a. b. c. d. e.Current ratio.Quick ratio.Debt-to-total-assets ratio. Asset turnover. Average collection period.3-7.Solution:Stud Clothiers- Current assetsCurrent ratio = -------------------------Current liabilities $650,000$250,000=2.6x3-7. (Continued)1 i (Current assets 一 inventory) b. Quick ratio = --------------------------------------Current liabilities_ $650,000-$350,000 $250,000 _ $300,000 -$250,000 =1.2x-i 1 Total debt c.Debt to total assets = ------------------Total assets$400,000 —$1,060,000 = 37.74%」▲Salesd. Asset turnover = ------------------Total assets_ $2,400,000 —$1，060,000 =2.26xp 。
国际财务管理（英文版）第11版马杜拉答案Chapter3
Chapter 3International Financial Markets Lecture OutlineMotives for Using International Financial Markets Motives for Investing in Foreign MarketsMotives for Providing Credit in Foreign MarketsMotives for Borrowing in Foreign MarketsForeign Exchange MarketHistory of Foreign ExchangeForeign Exchange TransactionsExchange QuotationsForeignInterpretingCurrency Futures and Options MarketsInternational Money MarketOrigins and DevelopmentStandardizing Global Bank RegulationsInternational Credit MarketSyndicated LoansInternational Bond MarketEurobond MarketDevelopment of Other Bond MarketsComparing Interest Rates Among CurrenciesInternational Stock MarketsIssuance of Foreign Stock in the U.S.Issuance of Stock in Foreign MarketsComparison of International Financial MarketsHow Financial Markets Affect an MNC’s ValueChapter ThemeThis chapter identifies and discusses the various international financial markets used by MNCs. These markets facilitate day-to-day operations of MNCs, including foreign exchange transactions, investing in foreign markets, and borrowing in foreign markets.Topics to Stimulate Class Discussion1. Why do international financial markets exist?2. How do banks serve international financial markets?3. Which international financial markets are most important to a firm that consistently needsshort-term funds? What about a firm that needs long-term funds?Critical debateShould firms that go public engage in international offerings?Proposition Yes. When a firm issues shares to the public for the first time in an initial public offering (IPO), it is naturally concerned about whether it can place all of its shares at a reasonable price. It will be able to issue its shares at a higher price by attracting more investors. It will increase its demand by spreading the shares across countries. The higher the price at which it can issue shares, the lower is its cost of using equity capital. It can also establish a global name by spreading shares across countries.Opposing view No. If a firm spreads its shares across different countries at the time of the IPO, there will be less publicly traded shares in the home country. Thus, it will not have as much liquidity in the secondary market. Investors desire shares that they can easily sell in the secondary market, which means that they require that the shares have liquidity. To the extent that a firm reduces its liquidity in the home country by spreading its share across countries, it may not attract sufficient home demand for the shares. Thus, its efforts to create global name recognition may reduce its name recognition in the home country.With whom do you agree? State your reasons. Use InfoTrac or some other search engine to learn more about this issue. Which argument do you support? Offer your own opinion on this issue.ANSWER: The key is that students recognize the tradeoff involved. A firm that engages in a relatively small IPO will have limited liquidity even when all of the stock is issued in the home country. Thus, it should not consider issuing stock internationally. However, firms with larger stock offerings may be in a position to issue a portion of their shares outside the home country. They should not spread the stocks across several countries, but perhaps should target one or two countries where they conduct substantial business. They want to ensure sufficient liquidity in each of the foreign countries where they sell shares.Stock Markets are inefficientPropositionI cannot believe that if the value of the euro in terms of, say, the British pound increases three days in a row, on the fourth day there is still a 50:50 chance that it will go up or down in value. I think that most investors will see a trend and will buy, therefore the price is morelikely to go up. Also, if the forward market predicts a rise in value, on average, surely it is going to rise in value. In other words, currency prices are predictable. And finally, if it were so unpredictable and therefore unprofitable to the speculator, how is it that there is such a vast sum of money being traded every day for speculative purposes – there is no smoke without fire.The simple answer is that if that is what you believe, buy currencies that have viewOpposingincreased three days in a row and on average you should make a profit, buy currencies where the forward market shows an increase in value. The fact is that there are a lot of investors with just your sort of views. The market traders know all about such beliefs and will price the currency so that such easy profit (their loss) cannot be made. Look at past currency rates for yourself, check all fourth day changes after three days of rises, any difference is going to be not enough to cover transaction costs or trading expenses and the slight inaccuracy in your figures which are likely to be closing day mid point of the bid/ask spread. No, all currency movements are related to information and no-one knows if tomorrows news will be better or worse than expected.With whom do you agree? Could there be undiscovered patterns? Could some movements not be related to information? Could some private news be leaking out?ANSWER: Clearly there are no obvious patterns. Discussion on the impossibility of obvious patterns is worth emphasizing. However, does market inefficiency necessarily involve patterns, could market manipulation be occasional. There is worrying evidence from share price movements that there is unusual movement before announcements on many occasions, so the ideathat traders do not occasionally collude and move the price without supporting economic evidence is not an unreasonable view. Proof is however difficult as we have to separate anticipation from prior knowledge, the lucky speculator from the speculator who was in the know.Answers to End of Chapter Questions1. Motives for Investing in Foreign Money Markets. Explain why an MNC may invest fundsin a financial market outside its own country.ANSWER: The MNC may be able to earn a higher interest rate on funds invested in a financial market outside of its own country. In addition, the exchange rate of the currency involved may be expected to appreciate.2. Motives for Providing Credit in Foreign Markets. Explain why some financial institutionsprefer to provide credit in financial markets outside their own country.ANSWER: Financial institutions may believe that they can earn a higher return by providing credit in foreign financial markets if interest rate levels are higher and if the economic conditions are strong so that the risk of default on credit provided is low. The institutions may also want to diversity their credit so that they are not too exposed to the economic conditions in any single country.3. Exchange Rate Effects on Investing. Explain how the appreciation of the Australian dollaragainst the euro would affect the return to a French firm that invested in an Australian money market security.ANSWER: If the Australian dollar appreciates over the investment period, this implies that the French firm purchased the Australian dollars to make its investment at a lower exchange rate than the rate at which it will convert A$ to euros when the investment period is over.Thus, it benefits from the appreciation. Its return will be higher as a result of this appreciation.4. Exchange Rate Effects on Borrowing. Explain how the appreciation of the Japanese yenagainst the UK pound would affect the return to a UK firm that borrowed Japanese yen and used the proceeds for a UK project.ANSWER: If the Japanese yen appreciates over the borrowing period, this implies that the UK firm converted yen to pounds at a lower exchange rate than the rate at which it paid for yen at the time it would repay the loan. Thus, it is adversely affected by the appreciation. Its cost of borrowing will be higher as a result of this appreciation.5. Bank Services. List some of the important characteristics of bank foreign exchange servicesthat MNCs should consider.ANSWER: The important characteristics are (1) competitiveness of the quote, (2) the firm’s relationship with the bank, (3) speed of execution, (4) advice about current market conditions, and (5) forecasting advice.6. Bid/ask Spread. Delay Bank’s bid price for US dollars is £0.53 and its ask price is £0.55.What is the bid/ask percentage spread?ANSWER: (£0.55– £0.53)/£0.55 = .036 or 3.6%7. Bid/ask Spread. Compute the bid/ask percentage spread for Mexican peso in which the askrate is 20.6 New peso to the dollar and the bid rate is 21.5 New peso to the dollar.ANSWER: direct rates are 1/20.6 = $0.485:1 peso as the ask rate and 1/21.5 = $0.465:1 peso as the bid rate so the spread is[($0.485 – $0.465)/$0.485] = .041, or 4.1%. Note that the spread is fro the Mexiccan peso not the dollar.8. Forward Contract. The Wolfpack ltd is a UK exporter that invoices its exports to the UnitedStates in dollars. If it expects that the dollar will appreciate against the pound in the future, should it hedge its exports with a forward contract? Explain..ANSWER: The forward contract can hedge future receivables or payables in foreign currencies to insulate the firm against exchange rate risk. Yet, in this case, the Wolfpack Corporation should not hedge because it would benefit from appreciation of the dollar when it converts the dollars to pounds.9. Euro. Explain the foreign exchange situation for countries that use the euro when theyengage in international trade among themselves.ANSWER: There is no foreign exchange. Euros are used as the medium of exchange.10. Indirect Exchange Rate. If the direct exchange rate of the euro is worth £0.685, what is theindirect rate of the euro? That is, what is the value of a pound in euros?ANSWER: 1/0.685 = 1.46 euros.11. Cross Exchange Rate. Assume Poland’s currency (the zloty) is worth £0.17 and theJapanese yen is worth £0.005. What is the cross (implied) rate of the zloty with respect to yen?ANSWER: £0.17/£0.005 = 34 zloty:1 yen12. Syndicated Loans. Explain how syndicated loans are used in international markets.ANSWER: A large MNC may want to obtain a large loan that no single bank wants to accommodate by itself. Thus, a bank may create a syndicate whereby several other banks also participate in the loan.13. Loan Rates. Explain the process used by banks in the Eurocredit market to determine the rateto charge on loans.ANSWER: Banks set the loan rate based on the prevailing LIBOR, and allow the loan rate to float (change every 6 months) in accordance with changes in LIBOR.14. International Markets. What is the function of the international money market? Brieflydescribe the reasons for the development and growth of the European money market. Explain how the international money, credit, and bond markets differ from one another.ANSWER: The function of the international money market is to efficiently facilitate the flow of international funds from firms or governments with excess funds to those in need of funds.Growth of the European money market was largely due to (1) regulations in the U.S. that limited foreign lending by U.S. banks; and (2) regulated ceilings placed on interest rates of dollar deposits in the U.S. that encouraged deposits to be placed in the Eurocurrency market where ceilings were nonexistent.The international money market focuses on short-term deposits and loans, while the international credit market is used to tap medium-term loans, and the international bond market is used to obtain long-term funds (by issuing long-term bonds).15. Evolution of Floating Rates. Briefly describe the historical developments that led to floatingexchange rates as of 1973.ANSWER: Country governments had difficulty in maintaining fixed exchange rates. In 1971, the bands were widened. Yet, the difficulty of controlling exchange rates even within these wider bands continued. As of 1973, the bands were eliminated so that rates could respond to market forces without limits (although governments still did intervene periodically).16. International Diversification. Explain how the Asian crisis would have affected the returnsto a UK. firm investing in the Asian stock markets as a means of international diversification.[See the chapter appendix.]ANSWER: The returns to the UK firm would have been reduced substantially as a result of the Asian crisis because of both declines in the Asian stock markets and because of currency depreciation. For example, the Indonesian stock market declined by about 27% from June 1997 to June 1998. Furthermore, the Indonesian rupiah declined against the U.S. dollar by 84%.17.Eurocredit Loans.a.With regard to Eurocredit loans, who are the borrowers?b. Why would a bank desire to participate in syndicated Eurocredit loans?c. What is LIBOR and how is it used in the Eurocredit market?ANSWER:a. Large corporations and some government agencies commonly request Eurocredit loans.b. With a Eurocredit loan, no single bank would be totally exposed to the risk that theborrower may fail to repay the loan. The risk is spread among all lending banks within the syndicate.c. LIBOR (London interbank offer rate) is the rate of interest at which banks in Europe lendto each other. It is used as a base from which loan rates on other loans are determined in the Eurocredit market.18. Foreign Exchange. You just came back from Canada, where the Canadian dollar was worth£0.43. You still have C$200 from your trip and could exchange them for pounds at the airport, but the airport foreign exchange desk will only buy them for £0.40. Next week, you will be going to Mexico and will need pesos. The airport foreign exchange desk will sell you pesos for £0.055 per peso. You met a tourist at the airport who is from Mexico and is on his way to Canada. He is willing to buy your C$200 for 1500 New Pesos. Should you accept the offer or cash the Canadian dollars in at the airport? Explain.ANSWER: Exchange with the tourist. If you exchange the C$ for pesos at the foreign exchange desk, the C$200 is multiplied by £0.40 and then divided by £0.055 ie a ratio of £0.40/0.055 = 7.27 pesos to the C$. The total pesos would be 200 x 7.27 = 1454 pesos, a little less than is being offered by the tourist.19. Foreign Stock Markets. Explain why firms may issue stock in foreign markets. Why mightMNCs issue more stock in Europe since the conversion to a single currency in 1999?ANSWER: Firms may issue stock in foreign markets when they are concerned that their home market may be unable to absorb the entire issue. In addition, these firms may have foreign currency inflows in the foreign country that can be used to pay dividends on foreign-issued stock. They may also desire to enhance their global image. Since the euro can be used in several countries, firms may need a large amount of euros if they are expanding across Europe.20. Stock Market Integration. Bullet plc a UK firm, is planning to issue new shares on theLondon Stock Exchange this month. The only decision still to be made is the specific day on which the shares will be issued. Why do you think Bullet monitors results of the Tokyo stock market every morning?ANSWER: The UK stock market prices sometimes follow Japanese market prices. Thus, the firm would possibly be able to issue its stock at a higher price in the UK if it can use the Japanese market as an indicator of what will happen in the UK market. However, this indicator will not always be accurate.Advanced Questions21. Effects of September 11. Why do you think the terrorist attack on the U.S. was expected tocause a decline in U.S. interest rates? Given the expectations for a potential decline in U.S.interest rates and stock prices, how were capital flows between the U.S. and other countries likely affected?ANSWER: The attack was expected to cause a weaker economy, which would result in lower U.S. interest rates. Given the lower interest rates, and the weak stock prices, the amount of funds invested by foreign investors in U.S. securities would be reduced.22. International Financial Markets. Carrefour the French Supermarket chain has established retail outlets worldwide. These outlets are massive and contain products purchased locally as well as imports. As Carrefour generates earnings beyond what it needs abroad, it may remit those earnings back to France. Carrefour is likely to build additional outlets especially in China.a. Explain how the Carrefour outlets in China would use the spot market in foreign exchange.ANSWER:The Carrefour stores in China need other currencies to buy products from other countries, and must convert the Chinese currency (yuan) into the other currencies in the spot market to purchase these products. They also could use the spot market to convert excess earnings denominated in yuan into euros, which would be remitted to the French parent.b. Explain how Carrefour might utilize the international money markets when it isestablishing other Carrefour stores in Asia.ANSWER: Carrefour may need to maintain some deposits in the Eurocurrency market that can be used (when needed) to support the growth of Carrefour stores in various foreign markets. When some Carrefour stores in foreign markets need funds, they borrow from banks in the Eurocurrency market. Thus, the Eurocurrency market serves as a deposit or lending source for Carrefour and other MNCs on a short-term basis. (Eurocurrency refers to international currencies, most likely the dollar, not just the euro!)c. Explain how Carrefour could use the international bond market to finance theestablishment of new outlets in foreign markets.ANSWER: Carrefour could issue bonds in the Eurobond market to generate funds needed to establish new outlets. The bonds may be denominated in the currency that is needed; then, once the stores are established, some of the cash flows generated by those stores could be used to pay interest on the bonds.23.Interest Rates. Why do interest rates vary among countries? Why are interest rates normallysimilar for those European countries that use the euro as their currency? Offer a reason why the government interest rate of one country could be slightly higher than that of the government interest rate of another country, even though the euro is the currency used in both countries.ANSWER: Interest rates in each country are based on the supply of funds and demand for funds for a given currency. However, the supply and demand conditions for the euro are dictated by all participating countries in aggregate, and do not vary among participating countries. Yet, the government interest rate in one country that uses the euro could be slightly higher than others that use the euro if it is subject to default risk. The higher interest rate would reflect a risk premium.Blades plc Case Study。
国际财务管理课后习题答案chapter 3
CHAPTER 3 BALANCE OF PAYMENTSSUGGESTED ANSWERS AND SOLUTIONS TO END-OF-CHAPTERQUESTIONS AND PROBLEMSQUESTIONS1. Define the balance of payments.Answer: The balance of payments (BOP) can be defined as the statistical record of a country’s international transactions over a certain period of time presented in the form of double-entry bookkeeping.2. Why would it be useful to examine a country’s balance of payments data?Answer: It would be useful to examine a country’s BOP for at least two reaso ns. First, BOP provides detailed information about the supply and demand of the country’s currency. Second, BOP data can be used to evaluate the performance of the country in international economic competition. For example, if a country is experiencing per ennial BOP deficits, it may signal that the country’s industries lack competitiveness.3. The United States has experienced continuous current account deficits since the early 1980s. What do you think are the main causes for the deficits? What would be the consequences of continuous U.S. current account deficits?Answer: The current account deficits of U.S. may have reflected a few reasons such as (I) a historically high real interest rate in the U.S., which is due to ballooning federal budget deficits, that kept the dollar strong, and (ii) weak competitiveness of the U.S. industries.4. In contrast to the U.S., Japan has realized continuous current account surpluses. What could be the main causes for these surpluses? Is it desirable to have continuous current account surpluses?Answer: Japan’s continuous current account surpluses may have reflected a weak yen and high competitiveness of Japanese industries. Massive capital exports by Japan prevented yen from appreciating more than it did. At the same time, foreigners’ exports to Japan were hampered by closed nature of Japanese markets. Continuous current account surpluses disrupt free trade by promoting protectionistsentiment in the deficit country. It is not desirable especially when it is brought about by the mercantilist policies.5. Comment on the following statement: “Since the U.S. imports more than it exports, it is necessary for the U.S. to import capital from foreign countries to finance its current account deficits.”Answer: The statement presupposes that the U.S. current account deficit causes its capital account surplus. In reality, the causality may be running in the opposite direction: U.S. capital account surplus may cause the country’s current account deficit. Suppose foreigners fin d the U.S. a great place to invest and send their capital to the U.S., resulting in U.S. capital account surplus. This capital inflow will strengthen the dollar, hurting the U.S. export and encouraging imports from foreign countries, causing current account deficits.6. Explain how a country can run an overall balance of payments deficit or surplus.Answer: A country can run an overall BOP deficit or surplus by engaging in the official reserve transactions. For example, an overall BOP deficit can be su pported by drawing down the central bank’s reserve holdings. Likewise, an overall BOP surplus can be absorbed by adding to the central bank’s reserve holdings.7. Explain official reserve assets and its major components.Answer: Official reserve assets are those financial assets that can be used as international means of payments. Currently, official reserve assets comprise: (I) gold, (ii) foreign exchanges, (iii) special drawing rights (SDRs), and (iv) reserve positions with the IMF. Foreign exchanges are by far the most important official reserves.8. Explain how to compute the overall balance and discuss its significance.Answer: The overall BOP is determined by computing the cumulative balance of payments including the current account, capital account, and the statistical discrepancies. The overall BOP is significant because it indicates a country’s international payment gap that must be financed by the government’s official reserve transactions.9. Since the early 1980s, foreign portfolio investors have purchased a significant portion of U.S. treasury bond issues. Discuss the short-term and long-term effects of foreigners’ portfolio investment on the U.S. balance of payments.Answer: As foreigners purchase U.S. Treasury bonds, U.S. BOP will improve in the short run. But in the long run, U.S. BOP may deteriorate because the U.S. should pay interests and principals to foreigners. If foreign funds are used productively and contributes to the competitiveness of U.S. industries, however, U.S. BOP may improve in the long run.10. Describe the balance of payments identity and discuss its implications under the fixed and flexible exchange rate regimes.Answer: The balance of payments identity holds that the combined balance on the current and capital accounts should be equal in size, but opposite in sign, to the change in the official reserves: BCA + BKA = -BRA. Under the pure flexible exchange rate regime, central banks do not engage in official reserve transactions. Thus, the overall balance must balance, i.e., BCA = -BKA. Under the fixed exchange rate regime, however, a country can have an overall BOP surplus or deficit as the central bank will accommodate it via official reserve transactions.11. Exhibit 3.3 indicates that in 1991, the U.S. had a current account deficit and at the same time a capital account deficit. Explain how this can happen?Answer: In 1991, the U.S. experienced an overall BOP deficit, which must have been accommodated by the Federal Reserve’s official reserve action, i.e., drawing down its reserve holdings.12. Explain how each of the following transactions will be classified and recorded in the debit and credit of the U.S. balance of payments:(1) A Japanese insurance company purchases U.S. Treasury bonds and pays out of its bank account kept in New York City.(2) A U.S. citizen consumes a meal at a restaurant in Paris and pays with her American Express card.(3) A Indian immigrant living in Los Angeles sends a check drawn on his L.A. bank account as a gift to his parents living in Bombay.(4) A U.S. computer programmer is hired by a British company for consulting and gets paid from the U.S. bank account maintained by the British company.Answer:_________________________________________________________________Transactions Credit Debit_________________________________________________________________Japanese purchase of U.S. T bonds √Japanese payment using NYC account √U.S. citizen having a meal in Paris √Paying the meal with American Express √Gift to parents in Bombay √Receipts of the check by parents (goodwill) √Export of programming service √British payment out its account in U.S. √_________________________________________________________________13. Construct the balance of payment table for Japan for the year of 1998 which is comparable in format to Exhibit 3.1, and interpret the numerical data. You may consult International Financial Statistics published by IMF or research for useful websites for the data yourself.Answer:A summary of the Japanese Balance of Payments for 1998 (in $ billion)Credits DebitsCurrent Account(1) Exports 646.03(1.1) Merchandise 374.04(1.2) Services 62.41(1.3) Factor income 209.58(2) Imports -516.50(2.1) Merchandise -251.66(2.2) Services -111.83(3.3) Factor income -153.01(3) Unilateral transfer 5.53 -14.37Balance on current account 120.69[(1) + (2) + (3)]Capital Account(4) Direct investment 3.27 -24.62(5) Portfolio investment 73.70 -113.73(5.1) Equity securities 16.11 -14.00(5.2) Debt securities 57.59 -99.73(6) Other investment 39.51 -109.35Balance on financial account -131.22[(4) + (5) + (6)](7) Statistical discrepancies 4.36Overall balance -6.17Official Reserve Account 6.17Source: IMF, International Financial Statistics Yearbook, 1999.Note: Capital account in the above table corresponds with the ‘Financial account’ in IMF’s balance of payment statistics. IMF’s Capital account’ is included in ‘Other investment’ in the above table.MINI CASE: MEXICO’S BALANCE OF PAYMENTS PROBLEMRecently, Mexico experienced large-scale trade deficits, depletion of foreign reserve holdings and a major currency devaluation in December 1994, followed by the decision to freely float the peso. These events also brought about a severe recession and higher unemployment in Mexico. Since the devaluation, however, the trade balance has improved.Investigate the Mexican experiences in detail and write a report on the subject. In the report, you may:(a) document the tr end in Mexico’s key economic indicators, such as the balance of payments, the exchange rate, and foreign reserve holdings, during the period 1994.1 through 1995.12.;(b) investigate the causes of Mexico’s balance of payments difficulties prior to the peso devaluation;(c) discuss what policy actions might have prevented or mitigated the balance of payments problem and the subsequent collapse of the peso; and(d) derive lessons from the Mexican experience that may be useful for other developing countries.In your report, you may identify and address any other relevant issues concerning Mexico’s balance of payment problem.Suggested Solution to Mexico’s Balance-of-Payments ProblemTo solve this case, it is useful to review Chapter 2, especially the section on the Mexican peso crisis. Despite the fact that Mexico had experienced continuous trade deficits until December 1994, the country’s currency was not allowed to depreciate for political reasons. The Mexican government did not want the peso devaluation before the Presidential election held in 1994. If the Mexican peso had been allowed to gradually depreciate against the major currencies, the peso crisis could have been prevented.The key lessons that can be derived from the peso crisis are: First, Mexico depended too much on short-term foreign portfolio capital (which is easily reversible) for its economic growth. The country perhaps should have saved more domestically and depended more on long-term foreign capital. This can be a valuable lesson for many developing countries. Second, the lack of reliable economic information was another contributing factor to the peso crisis. The Salinas administration was reluctant to fully disclose the true state of the Mexican economy. If investors had known that Mexico was experiencing serious trade deficits and rapid depletion of foreign exchange reserves, the peso might have been gradually depreciating, rather than suddenly collapsed as it did. The transparent disclosure of economic data can help prevent the peso-type crisis. Third, it is important to safeguard the world financial system from the peso-type crisis. To this end, a multinational safety net needs to be in place to contain the peso-type crisis in the early stage.。
国际财务管理作业Chapter-3---Test-Bank
Chapter 3—International Financial Markets1. Assume that a bank's bid rate on Swiss francs is $.45 and its ask rate is $.47. Its bid-ask percentagespread is:a. about 4.44%.b. about 4.26%.c. about 4.03%.d. about 4.17%.ANS: BSOLUTION: Bid-ask percentage spread = ($.47 − $.45)/$.47 = 4.26%PTS: 12. Assume that a bank's bid rate on Japanese yen is $.0041 and its ask rate is $.0043. Its bid-askpercentage spread is:a. about 4.99%.b. about 4.88%.c. about 4.65%.d. about 4.43%.ANS: CSOLUTION: Bid-ask percentage spread = ($.0043 − $.0041)/$.0043 = 4.65%PTS: 13. The bid/ask spread for small retail transactions is commonly in the range of ____ percent.a. 3 to 7b. .01 to .03c. 10 to 15d. .5 to 1ANS: A PTS: 14. ____ is not a factor that affects the bid/ask spread.a. Order costsb. Inventory costsc. Volumed. All of the above factors affect the bid/ask spreadANS: D PTS: 15. The forward rate is the exchange rate used for immediate exchange of currencies.a. Trueb. FalseANS: F PTS: 16. The ask quote is the price for which a bank offers to sell a currency.a. Trueb. FalseANS: T PTS: 17. According to the text, the forward rate is commonly used for:a. hedging.b. immediate transactions.c. previous transactions.d. bond transactions.ANS: A PTS: 18. If a U.S. firm desires to avoid the risk from exchange rate fluctuations, and it is receiving 100,000 in90 days, it could:a. obtain a 90-day forward purchase contract on euros.b. obtain a 90-day forward sale contract on euros.c. purchase euros 90 days from now at the spot rate.d. sell euros 90 days from now at the spot rate.ANS: B PTS: 19. If a U.S. firm desires to avoid the risk from exchange rate fluctuations, and it will need C$200,000 in90 days to make payment on imports from Canada, it could:a. obtain a 90-day forward purchase contract on Canadian dollars.b. obtain a 90-day forward sale contract on Canadian dollars.c. purchase Canadian dollars 90 days from now at the spot rate.d. sell Canadian dollars 90 days from now at the spot rate.ANS: A PTS: 110. Assume the Canadian dollar is equal to $.88 and the Peruvian Sol is equal to $.35. The value of thePeruvian Sol in Canadian dollars is:a. about .3621 Canadian dollars.b. about .3977 Canadian dollars.c. about 2.36 Canadian dollars.d. about 2.51 Canadian dollars.ANS: BSOLUTION: $.35/$.88 = .3977PTS: 111. Which of the following is not true with respect to spot market liquidity?a. The more willing buyers and sellers there are, the more liquid a market is.b. The spot markets for heavily traded currencies such as the Japanese yen are very liquid.c. A currency's liquidity affects the ease with which an MNC can obtain or sell that currency.d. If a currency is illiquid, an MNC is typically able to quickly purchase that currency at areasonable exchange rate.ANS: D PTS: 112. Forward markets for currencies of developing countries are:a. prohibited.b. less liquid than markets for developed countries.c. more liquid than markets for developed countries.d. only available for use by government agencies.ANS: B PTS: 113. A forward contract can be used to lock in the ____ of a specified currency for a future point in time.a. purchase priceb. sale pricec. A or Bd. none of the aboveANS: C PTS: 114. The forward market:a. for euros is very illiquid.b. for Eastern European countries is very liquid.c. does not exist for some currencies.d. none of the aboveANS: C PTS: 115. ____ is not a bank characteristic important to customers in need of foreign exchange.a. Quote competitivenessb. Speed of executionc. Forecasting adviced. Advice about current market conditionse. All of the above are important bank characteristics to customers in need of foreignexchange.ANS: E PTS: 116. The Basel II accord is focused on eliminating inconsistencies in ____ across countries.a. capital requirementsb. deposit ratesc. deposit insuranced. bank failure policiesANS: A PTS: 117. The international money market primarily concentrates on:a. short-term lending (one year or less).b. medium-term lending.c. long-term lending.d. placing bonds with investors.e. placing newly issued stock in foreign markets.ANS: A PTS: 118. The international credit market primarily concentrates on:a. short-term lending (less than one year).b. medium-term lending.c. long-term lending.d. providing an exchange of foreign currencies for firms who need them.e. placing newly issued stock in foreign markets.ANS: B PTS: 119. The main participants in the international money market are:a. consumers.b. small firms.c. large corporations.d. small European firms needing European currencies for international trade.ANS: C PTS: 120. LIBOR is:a. the interest rate commonly charged for loans between banks.b. the average inflation rate in European countries.c. the maximum loan rate ceiling on loans in the international money market.d. the maximum deposit rate ceiling on deposits in the international money market.e. the maximum interest rate offered on bonds that are issued in London.ANS: A PTS: 121. A syndicated loan:a. represents a loan by a single bank to a syndicate of corporations.b. represents a loan by a single bank to a syndicate of country governments.c. represents a direct loan by a syndicate of oil-producing exporters to a less developedcountry.d. represents a loan by a group of banks to a borrower.e. A and BANS: D PTS: 122. The international money market is primarily served by:a. the governments of European countries, which directly intervene in foreign currencymarkets.b. government agencies such as the International Monetary Fund that enhance developmentof countries.c. several large banks that accept deposits and provide loans in various currencies.d. small banks that convert foreign currency for tourists and business visitors.ANS: C PTS: 123. International money market transactions normally represent:a. the equivalent of $1 million or more.b. the equivalent of $1,000 to $10,000.c. the equivalent of between $10,000 and $100,000.d. the equivalent of between $100,000 and $200,000.ANS: A PTS: 124. A put option is the amount or percentage by which the existing spot rate exceeds the forward rate.a. Trueb. FalseANS: F PTS: 125. From 1944 to 1971, the exchange rate between any two currencies was typically:a. fixed within narrow boundaries.b. floating, but subject to central bank intervention.c. floating, and not subject to central bank intervention.d. nonexistent; that is currencies were not exchanged, but gold was used to pay for all foreigntransactions.ANS: A PTS: 126. As a result of the Smithsonian Agreement, the U.S. dollar was:a. the currency to be used by all countries as a medium of exchange for international trade.b. forced to be freely floating relative to all currencies without any boundaries.c. devalued relative to major currencies.d. revalued (upward) relative to major currencies.ANS: C PTS: 127. According to the text, the average foreign exchange trading around the world ____ per day.a. equals about $200 billionb. equals about $400 billionc. equals about $700 billiond. exceeds $1 trillionANS: D PTS: 128. Assume a Japanese firm invoices exports to the U.S. in U.S. dollars. Assume that the forward rate andspot rate of the Japanese yen are equal. If the Japanese firm expects the U.S. dollar to ____ against the yen, it would likely wish to hedge. It could hedge by ____ dollars forward.a. depreciate; buyingb. depreciate; sellingc. appreciate; sellingd. appreciate; buyingANS: B PTS: 129. The bid-ask spread on an exchange rate can be used to directly determine:a. how an exchange rate will change.b. the transaction cost of foreign exchange.c. the forward premium.d. the currency option premium.ANS: B PTS: 130. Futures contracts are typically ____; forward contracts are typically ____.a. sold on an exchange; sold on an exchangeb. offered by commercial banks; sold on an exchangec. sold on an exchange; offered by commercial banksd. offered by commercial banks; offered by commercial banksANS: C PTS: 131. Eurobonds:a. are usually issued in bearer form.b. typically carry several protective covenants.c. cannot contain call provisions.d. A and BANS: A PTS: 132. Which of the following is true?a. Non-U.S. firms may desire to issue bonds in the U.S. due to less regulations in the U.S.b. U.S. firms may desire to issue bonds in the U.S. due to less regulations in the U.S.c. U.S. firms may desire to issue bonds in the non-U.S. markets due to less regulations innon-U.S. countries.d. A and BANS: C PTS: 133. Eurobonds:a. can be issued only by European firms.b. can be sold only to European investors.c. A and Bd. none of the aboveANS: D PTS: 134. Which currency is used the most to denominate Eurobonds?a. the British pound.b. the Japanese yen.c. the U.S. dollar.d. the Swiss franc.ANS: C PTS: 135. When the foreign exchange market opens in the U.S. each morning, the opening exchange ratequotations will be based on the:a. closing prices in the U.S. during the previous day.b. closing prices in Canada during the previous day.c. prevailing prices in locations where the foreign exchange markets have been open.d. officially set by central banks before the U.S. market opens.ANS: C PTS: 136. The U.S. dollar is not ever used as a medium of exchange in:a. industrialized countries outside the U.S.b. in any Latin American countries.c. in Eastern European countries where foreign exchange restrictions exist.d. none of the aboveANS: D PTS: 137. Which of the following is not true regarding the Bretton Woods Agreement?a. It called for fixed exchange rates between currencies.b. Governments intervened to prevent exchange rates from moving more than 1 percentabove or below their initially established levels.c. The agreement lasted from 1944 until 1971.d. Each country used gold to back its currency.e. All of the above are true regarding the Bretton Woods Agreement.ANS: D PTS: 138. A Japanese yen is worth $.0080, and a Fijian dollar (F$) is worth $.5900. What is the value of the yenin Fijian dollars (i.e., how many Fijian dollars do you need to buy a yen)?a. 73.75.b. 125.c. 1.69.d. 0.014.e. none of the aboveANS: DSOLUTION: ($.008/$.59) = F$.014/¥PTS: 139. The existence of imperfect markets has prevented the internationalization of financial markets.a. Trueb. FalseANS: F PTS: 140. Under the gold standard, each currency was convertible into gold at a specified rate, and the exchangerate between two currencies was determined by their relative convertibility rates per ounce of gold.a. Trueb. FalseANS: T PTS: 141. An investor engaging in a transaction whereby he or she contracts to purchase British pounds one yearfrom now is an example of a spot market transaction.a. Trueb. FalseANS: F PTS: 142. The Single European Act prevented a trend toward increased globalization in the banking industry.a. Trueb. FalseANS: F PTS: 143. A cross exchange rate expresses the amount of one foreign currency per unit of another foreigncurrency.a. Trueb. FalseANS: T PTS: 144. A currency put option provides the right, but not the obligation, to buy a specific currency at a specificprice within a specific period of time.a. Trueb. FalseANS: F PTS: 145. The strike price is also known as the premium price.a. Trueb. FalseANS: F PTS: 146. The interest rate commonly charged for loans between banks is called the cross rate.a. Trueb. FalseANS: F PTS: 147. The Bretton Woods Agreement is an agreement to standardize banks' capital requirements acrosscountries; the resulting capital ratios are computed using risk-weighted assets.a. Trueb. FalseANS: F PTS: 148. The Basel Accord is an agreement among the major European countries to make regulations moreuniform across European countries and to reduce taxes on goods traded between these countries.a. Trueb. FalseANS: F PTS: 149. A futures contract is a contract specifying a standard volume of a particular currency to be exchangedon a specific settlement date.a. Trueb. FalseANS: T PTS: 150. Eurobonds are certificates representing bundles of stock.a. Trueb. FalseANS: F PTS: 151. A share of the ADR of a Dutch firm represents one share of that firm's stock that is traded on a Dutchstock exchange. The share price of the firm was 15 euros when the Dutch market closed. As the U.S.market opens, the euro is worth $1.10. Thus, the price of the ADR should be ____.a. $13.64b. $15.00c. $16.50d. 16.50 eurose. none of the aboveANS: CSOLUTION: 15 × $1.10 = $16.50PTS: 152. The ADR of a British firm is convertible into 3 shares of stock. The share price of the firm was 30pounds when the British market closed. When the U.S. market opens, the pound is worth $1.63. The price of this ADR should be $____.a. 48.90b. 146.70c. 55.21d. none of the aboveANS: BSOLUTION: 3 × 30 × $1.63 = $146.70PTS: 153. If there is a large supply of savings relative to the demand for short-term funds, the interest rate forthat country will be relatively low.a. Trueb. FalseANS: T PTS: 154. If there is a strong demand to borrow a currency, and a low supply of savings in that currency, theinterest rate will be relatively low.a. Trueb. FalseANS: F PTS: 155. The preferences of corporations and governments to borrow in foreign currencies and of investors tomake short-term investments in foreign currencies resulted in the creation of the international bond market.a. Trueb. FalseANS: F PTS: 156. Large commercial banks play a major role in the international money market by accepting short-termdeposits in large amounts (such as the equivalent of $1 million or more) and in various currencies, and channeling the money to corporations and government agencies that need to borrow those short-term funds in the desired currencies.a. Trueb. FalseANS: T PTS: 157. The term "eurobor" is widely used to reflect the interbank offer rate on euros.a. Trueb. FalseANS: T PTS: 158. The term "eurobor" is widely used to reflect the total amount of euros borrowed by the firms in Europeper month to finance their growth.a. Trueb. FalseANS: F PTS: 159. Institutional investors such as commercial banks, mutual funds, insurance companies, and pensionfunds from many countries are major participants in the international bond market.a. Trueb. FalseANS: T PTS: 160. In response to the Sarbanes-Oxley Act, the reporting costs were reduced, and many non-U.S. firms thatissued new shares of stock decided to place their stock in the United States.a. Trueb. FalseANS: F PTS: 161. Global regulations require that shareholders in all countries have the same rights wherever there arestock markets.a. Trueb. FalseANS: F PTS: 162. Shareholders have more voting power in some countries than others.a. Trueb. FalseANS: T PTS: 163. Shareholders can have influence on a wider variety of management issues in some countries.a. Trueb. FalseANS: T PTS: 164. The legal protection of shareholders is the same among countries.a. Trueb. FalseANS: F PTS: 165. Shareholders in some countries may have more power to effectively sue publicly-traded firms if theirexecutives or directors commit financial fraud.a. Trueb. FalseANS: T PTS: 166. In general, common law countries such as the U.S., Canada, and the United Kingdom allow for morelegal protection than French civil law countries such as France or Italy.a. Trueb. FalseANS: T PTS: 167. The government enforcement of securities laws varies among countries.a. Trueb. FalseANS: T PTS: 168. The degree of financial information that must be provided by public companies is the same amongcountries.a. Trueb. FalseANS: F PTS: 169. In general, stock markets allow for more price efficiency and attract more investors when they have allof the following except:a. more voting rights for shareholders.b. more legal protection.c. more enforcement of the laws.d. less stringent accounting requirements.ANS: D PTS: 170. In general, companies are attracted to the stock market in which there are very limited voting rights forshareholders.a. Trueb. FalseANS: F PTS: 171. If companies can rely on stock markets to obtain funds, they will have to rely more heavily on the____ market to raise long-term funds.a. derivativeb. long-term creditc. moneyd. foreign exchangeANS: B PTS: 172. The strike price on a currency option is also known as an exercise price.a. Trueb. FalseANS: T PTS: 173. Assume that the bank's bid quote of Mexican peso is $.126 and ask price is $.129. If you have Mexicanpesos, what is the amount of pesos that you need to purchase $100,000?a. 12,600b. 775,194c. 793,651d. 12,900ANS: C PTS: 174. When receiving quotations on a currency's exchange rate, the bank's bid quote is the rate at which thebank is willing to sell currency.a. Trueb. FalseANS: F PTS: 175. An obligation to purchase a specific amount of currency at a future point in time is called a:a. call optionb. spot contractc. put optiond. forward contracte. both B and D76. Which of the following is not a method that can be used to invest internationally?a. Investment in MNC stocksb. American depository receipts (ADRs)c. World Equity benchmark Shares (WEBS)d. International mutual fundse. All of the above are methods that can be used to invest internationally.ANS: E PTS: 177. The interest rate in developing countries is usually very low.a. Trueb. FalseANS: F PTS: 178. Assume that $1 is equal to .85 Euros and 98 yen. The value of yen in euros isa. .01b. 118c. 1.18d. .0087ANS: D PTS: 179. When obtaining a loan, the risk premium paid above LIBOR depends on the:a. risk-free interest rate of the borrower.b. credit risk of the borrower.c. borrower's stock price.d. lender's stock price.ANS: B PTS: 180. The largest global exchange is:a. NASDAQb. Tokyo Stock Exchangec. NYSE Euronextd. London Stock ExchangeANS: C PTS: 181. Which of the following is not true about syndicated loans?a. A borrower that receives a syndicated loan incurs various fees besides the interest rate.b. The loans are only denominated in U.S. dollars.c. The loans are provided by a group of banks to a borrower.d. The loans are usually formed in 6 weeks or less.ANS: B PTS: 182. The interest rate on the syndicated loan depends on the:a. currency denominating the loan.b. maturity of the loan.c. creditworthiness of the borrower.d. interbank lending rate.e. all of the above.83. Assume a U.S. firm has to pay for Korean imports in 60 days. It expects that Korean won willdepreciate, but it still wants to hedge its risk. What type of hedging is more appropriate in thissituation:a. Buy dollars forwardb. Sell dollars forwardc. Purchase call optiond. Purchase put optionANS: C PTS: 184. Certificates representing bundles of stock of non-U.S. firms are called:a. Eurobondsb. ADRsc. FRNsd. EuroborANS: B PTS: 185. Assume that the spot rate of the Singapore dollar is $.664. The ADR of a Singapore firm is convertibleinto 3 shares of stock. The price of an ADR is $20. What is the share price of the firm in Singapore dollars?a. 10b. 13.28c. 30.12d. 39.84ANS: A PTS: 186. Which of the following is not true regarding ADRs?a. ADRs are denominated in the currency of the stock's home country.b. ADRs enable U.S. investors to avoid cross-border transactionsc. ADRs allow non-U.S. firms to tap into U.S. market for funds.d. ADRs sometimes allow for arbitrage opportunities.ANS: A PTS: 187. The more intense the competition for the traded currency, the larger the bid/ask spread.a. Trueb. FalseANS: F PTS: 188. Banks charge larger bid/ask spreads than they would on less liquid, less traded currencies.a. Trueb. FalseANS: F PTS: 189. At any given point in time, a bank's bid quote will be greater than its ask quote.a. Trueb. FalseANS: F PTS: 190. An MNC with receivables in Japanese Yen purchases yen forward to hedge its exposure to exchangerate fluctuations.a. Trueb. FalseANS: F PTS: 191. A currency put option provides the right, but not the obligation, to buy a specific currency at a specificprice within a specific period of time.a. Trueb. FalseANS: F PTS: 192. The LIBOR varies among currencies because the market supply of and demand for funds vary amongcurrencies.a. Trueb. FalseANS: T PTS: 193. The international money market is frequently accessed by MNCs for short-term investment andfinancing decisions, while longer term financing decisions are made in the international credit market or the international bond market and in international stock markets.a. Trueb. FalseANS: T PTS: 194. Which of the following is not a possible bid/ask quotation for the Barbados dollar?a. $.50/$.51b. $.49/$.50c. $.52/$.51d. $.51/$.52e. All of the above are possible bid/ask quotations.ANS: C PTS: 195. Your company expects to receive 5,000,000 Japanese yen 60 days from now. You decide to hedgeyour position by selling Japanese yen forward. The current spot rate of the yen is $.0089, while the forward rate is $.0095. You expect the spot rate in 60 days to be $.0090. How many dollars will you receive for the 5,000,000 yen 60 days from now if you sell yen forward?a. $44,500b. $45,000c. $526 milliond. $47,500e. $556 millionANS: D PTS: 196. Which of the following is probably not an example of the use of forward contracts by an MNC?a. Hedging pound payables by selling pounds forwardb. Hedging peso receivables by selling pesos forwardc. Hedging yen payables by purchasing yen forwardd. Hedging peso payables by purchasing pesos forwarde. All of the above are examples of using forward contracts.ANS: A PTS: 197. A quotation representing the value of a foreign currency in dollars is referred to as a(n) ____ quotation;a quotation representing the number of units of a foreign currency per dollar is referred to as a(n) ____quotation.a. direct; indirectb. indirect; directc. direct; directd. indirect; indirecte. cannot be answered without more informationANS: A PTS: 198. You observe a quotation of the Japanese yen (¥) of $0.007. You are, however, interested in the numberof yen per dollar. Thus, you calculate the ____ quotation of ____ ¥/$.a. direct; 142.86b. indirect; 142.86c. indirect; 150d. direct; 150e. indirect; 0ANS: B PTS: 199. Which of the following is not true regarding electronic communications networks (ECNs)?a. They have a visible trading floor.b. Trades are executed by a computer network.c. They have been created in many countries to match orders between buyers and sellers.d. They allow investors to place orders on their computers.e. All of the above are true.ANS: A PTS: 1100. Which of the following is probably not appropriate for an MNC wishing to reduce its exposure to British pound payables?a. Purchase pounds forwardb. Buy a pound futures contractc. Buy a pound put optiond. Buy a pound call optionANS: C PTS: 1101. Futures contracts are sold on exchanges and are consequently ____ than forward contracts, which can be ____ to satisfy an MNC's needs.a. more standardized; standardizedb. more standardized; custom-tailoredc. more custom-tailored; standardizedd. more custom-tailored; custom-tailorede. less standardized; custom-tailoredANS: B PTS: 1102. An MNC's short-term financing decisions are satisfied in the ____ market, while its medium debt financing decisions are satisfied in the ____ market.a. international money; international creditb. international money; international bondc. international credit; international moneyd. international bond; international credite. international money; international stockANS: A PTS: 1。
财务管理(英文第十三版)ch 3_sheena
= 120,000/74,300
= 1.615
i= 8.3%
Types of Annuities
An Annuity represents a series of equal payments (or receipts) occurring over a specified number of equal distant periods.
P0 = FV - SI Present Value is the current value of a future
amount of money, or a series of payments, evaluated at a given interest rate.
Why Compound Interest?
Future Value Single Deposit (Formula)
FV1 = P0 (1+i)1 = $1,000 (1.07) = $1,070
Compound Interest You earned $70 interest on your $1,000
deposit over the first year. This is the same amount of interest you
Valuation Using Table I
FVIFi,n is on Table I at the end of the book
Period 1 2 3 4 5
6% 1.060 1.124 1.191 1.262 1.338
7% 1.070 1.145 1.225 1.311 1.403
财务管理英语chapter3
3) Usually a separate section reports the amount of taxes levied on income.
则(GAPP)).
Annual Report (年报):
年报中包括2种信息
公司总经理的公开信(letter to stockholders) 4种基本的财务报表(financial statements)
1-7
Balance sheet Income statement Statement of cash flows Statement of retained earnings
to determine incentives and rewards to allocate capital investment in firm’s segment or divisions
1-5
Anyway ,financial statements are probably the most important source of information,because various stakeholders can assess a firm’s financial health. Whereas,it is not easy to assess a firm’s real financial status
1-10
Debt versus Equity •Creditors generally receive the first claim on the firm’s cash flow. •Shareholder’s equity is the residual difference between assets and liabilities.
财务管理双语课程作业(英文题目).doc
Book Values versus Market Values Understand accounting rules, it is possible for a company’s liabilities to exceed its assets. When this occurs, the owner’s equity is negative. Can this happen with market values? Why or why not?Financial Ration Analysis A financial ratio by itself tells us little about a company since financial ratios vary a great deal across industries. There are two basic methods for analyzing financial ratios for a company: time trend analysis and peer group analysis. Why might each of these analysis methods be useful? What does each tell you about the company’s financial health?Present Value Suppose two athletes sign 10-year contracts for $80 million. In one case, we’re told that the $80 million will be paid in 10 equal installments. In the other case, we’re told that the$80 million will be paid in 10 installments, but the installments will increase by 5 percent per year. Who got the better deal?Bond Prices versus Yieldsa.What is the relationship between the price of a bond and its YTM?b.Explain why some bonds sell at a premium over par value while other bonds sell at adiscount. What do you know about the relationship between the coupon rate and the YTM for premium bonds? What about for discount bonds? For bonds selling at par value?c.What is the relationship between the current yield and YTM for premium bonds? Fordiscount bonds? For bonds selling at par value?Dividend Growth Model Under what two assumptions can we use the dividend growth model presented in the chapter to determine the value of a share of stock ? Comment on the reasonableness of these assumptions.6：Chapter 7, P193,Payback and Internal Rate of Return A project has perpetual cash flows of c per period,a cost of l, and a required return of R. Please defining:a)Payback periodb)Internal rate of returnc)Net present valueWhat is the relationship between the project’s payback and its IRR? What implications does your answer have for long-lived projects with relatively constant cash flows？7：Chapter8, P214, Q2Incremental Cash Flows Which of the following should be treated as an incremental cash flow when computing the NPV of an investment?a. A reduction of the sales of a company’s other products caused by the investment.b.An expenditure on plant and equipment that has not yet been made and will be made onlyif the project is accepted.c.Costs of research and development undertaken in connection with the product during thepast three years.d.Annual depreciation expense from the investment.e.Dividend payments by the firm.f.The resale value of plant and equipment at the end of the project’s life.g.Salary and medical costs for production personnel who will be employed only if theproject is accepted.8：Chapter 8,The information of a project as following (i=10%) ,Year 1 Year 2 Year 3 Year 4 Sales 7,000 7,000 7,000 7,000 Costs 2,000 2,000 2,000 2,000 Depreciation 2,500 2,500 2,500 2,500 EBTTax 850 850 850 850 Net incomeOCF 0Capital spending 10,000 0 0 0 0 Net Working Captial –200 –250 –300 –200 950 Incremental cashflowPlease :a) Finish the tableb) Calculate the NPVc) Calculate the IRRd) Critically evaluate this project.9：Chapter 9,A company investment 1,500,000(＄) to a project in the first year, and the project can beoperated about 5 years. The revenue and the variable costs each year of the project as following (I=13%):Pessimistic Expected OptimisticRevenue 2,783,000 3,600,000 4,387,500 Variable costs 1,742,400 2,100,000 2,386,800 Fixed costs 850,000 800,000 750,000 Depreciation 300,000 300,000 300,000 EBTTax –43,760 160,000 380,280 Net incomeOCFThe company should accept the project?SML Cost of Equity Estimation What are the advantages of using the SML approach to finding the cost of equity capital? What are the disadvantages? What are the specific pieces of information needed to use this method? Are all of these variable observable, or do they need to be estimated? What are some of the ways in which you could get these estimates?Efficient Market Hypothesis For each of the following scenarios, discuss whether profit opportunities exist from trading in the stock of the firm under the conditions that (1) the market is not weak form efficient, (2) the market is weak form but not semistrong form efficient, (3) the market is semistrong form but not strong form efficient, and (4) the market is strong form efficient.a.The stock price has risen steadily each day for the past 30 days.b.The financial statement for a company were released three days ago, and you believeyou’ve uncovered some anomalies in the company’s inventory and cost control reporting techniques that are causing the firm’s true liquidity strength to be understated.c.You observe that the senior management of a company has been buying a lot of thecompany’s stock on the open market over the past week.Use the following information for the next two questions:Technical analysis is a controversial investment practice. Technical analysis covers a wide array of techniques, which are all used in an attempt to predict the direction of a particular stock, or the market. Technical analysts look at two major types of information: historical stock prices and investor sentiment. A technical analyst would argue these two information sets provide information on the future direction of a particular stock, or the market as a whole.12：Chapter 15, P394, Q4Cost of debt What steps can stockholders take to reduce the cost of debt?13：Chapter 17, P448, Q3Sources and uses For the year just ended, you have gathered the following information on the Holly Corporation:a. A $200 dividend was paid.b.Accounts payable increased by $500.c.Fixed asset purchases were $900.d.Inventories increased by v625.e.Long-term debt decreased by $1,200.Label each as a source or use of cash and describe its effect on the firm’s cash balance.。
大学英语III练习题-财务管理-2020年上
大学英语I I I(专升本)练习题-财务管理-2020年上(总7页)--本页仅作为文档封面，使用时请直接删除即可----内页可以根据需求调整合适字体及大小--练习题1. (单选题) – Thank you so much for the book you sent me. – _________________(本题分)A、 No, Thank you.B、 I’m glad you like it.C、 Please, don’t say so.D、 No, it’s not so good.学生答案： B标准答案：B解析：得分： 32. (单选题) – It’s been a wonderful evening. Thank you very much. – __________________(本题分)A、 My pleasure.B、 I’m glad to hear that.C、 No, thanks.D、 It’s ok.学生答案： A标准答案：A解析：得分： 33. (单选题) –Thanks for the lovely party and the delicious food. – _________________(本题分)A、 No, thanks.B、 Never mind.C、 All right.D、 Don’t mention it.学生答案： D标准答案：D解析：得分： 34. (单选题) – You have won the football game. Congratulations! – _________________(本题分)A、 We are really lucky.B、 No one else could do it.C、 Oh, not really.D、 It’s nice of you to say so.学生答案： D标准答案：D解析：得分： 35. (单选题) –Thanks, you saved my life! – _________________(本题分)A、 Oh, I’m afraid I didn’t do well enough.B、 I’m glad I could help.C、 No problem.D、 It’s not necessary for you to say so.学生答案： B标准答案：B解析：得分： 36. (单选题) – You’ve been a great help. I do appreciate your kindness. – _________________(本题分)A、 You are welcome.B、 You are welcomed.C、 Forget it.D、 That’s what I should do.学生答案： A标准答案：A解析：得分： 37. (单选题) – I really like your apartment. – __________________(本题分)A、 That’s right.B、 You could say so.C、 Thanks for saying so.D、 Good idea.学生答案： C标准答案：C解析：得分： 38. (单选题) – Thanks for coming all the way over here. – _________________(本题分)A、 Don’t be sorry.B、 It’s no trouble.C、 Not at all.D、 Both "It’s no trouble" and "Not at all".学生答案： D标准答案：D解析：得分： 39. (单选题) – I couldn’t have done it without you. – _________________(本题分)A、 It doesn’t matter.B、 It’s nothing.C、 Yes, you are right.D、 Of course.学生答案： B标准答案：B解析：得分： 310. (单选题) – It’s very thoughtful of you to give me a ride. – _________________(本题分)A、 At your service.B、 Take it easy.C、 Sure.D、 You are too polite.学生答案： A标准答案：A解析：得分： 311. (单选题) Eventually he _____ the judgment and set the prisoner free.(本题分)A、 refusedB、 returnedC、 reversedD、 recovered学生答案： C标准答案：C解析：得分： 312. (单选题) Don’t worry. The problem is _____, and will be quickly overcome.(本题分)A、 unclearB、 seriousC、 minorD、 major学生答案： C标准答案：C解析：得分： 313. (单选题) I’d like to take _____ of this trip to buy the things I need。
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Chapter 3 Time Value of Money: An Introduction
3. Suppose your employer offers you a choice between a $5000 bonus and 100 shares of the company’s stock. Whichever one you choose will be awarded today. The stock is currently trading at $63 per share.
a. Suppose that if you receive the stock bonus, you are free to trade it. Which form of the bonus should you choose? What is its value?
Answer：（1）I will prefer to choose 100 shares of the company’s stock which is currently trading at $63 per share. （2）Its value is : 100*63 = $ 6300.
b. Suppose that if you receive the stock bonus, you are required to hold it for at least one year. What can you say about the value of the stock bonus now? What will your decision depend on?
Answer：（1）I think that the value of the stock bonus now is 5000 and the cash flow now is 0. （2）my decision depend on the time value of money and the interest rates.
8. Brett has almond orchards, but he is sick of almonds and prefers to eat walnuts instead. The owner of the walnut orchard next d oor has offered to swap this year’s crop with him. Assume he produces 1000 tons of almonds and his neighbor produces 800 tons of walnuts. If the market price of almonds is $100 per ton and the market price of walnuts is $110 per ton:
a. Should he make the exchange?
Answer：total price of almonds is: 1000*100 = $ 100000 ；
total price of walnuts is: 800* 110 = $ 88000
Because $ 100000 more than $ 88000, I think he should not make the exchange.
b. Does it matter whether he prefers almonds or walnuts? Why or why not? Answer：no 无关I think it does matter whether he prefers almonds or walnuts, because he is sick of almonds and prefers to eat walnuts instead, which means almonds is nothing or not valuable for him, even though at present the real price of almonds is more walnuts.
11. A friend asks to borrow $55 from you and in return will pay you $58 in one year. If your bank is offering a 6% interest rate on deposits and loans:
a. How much would you have in one year if you deposited the $55 instead? Answer: if I deposited $55, in one year, I will have get: 55*(1+6%) = $ 58.3.
b. How much money could you borrow today if you pay the bank $58 in one year? Answer: I will borrow: 58 / (1+6%) = $ 54,72
c. Should you loan the money to your friend or deposit it in the bank?
Answer: Because $58.3 is more than $ 58, I prefer to deposit my money in bank.
17. Consider the following alternatives:
i. $100 received in one year
ii. $200 received in 5 years
iii. $300 received in 10 years
a.Rank the alternatives from most valuable to least valuable if the interest rate is 10% per year.
Answer: the value of (i) now is: 100 / (1+10%) = $ 90.91
the value of (ii) now is: 200 / (1+10%)5 = $ 124.18
the value of (iii) now is: 300 / (1+10%)10 = $ 115.66
So the rank of alternatives from most valuable to least valuable is:
(ii) > (iii) > (i)
b. What is your ranking if the interest rate is only 5% per year?
Answer: the value of (i) now is: 100 / (1+5%) = $ 95.24
the value of (ii) now is: 200 / (1+5%)5 = $ 156.71
the value of (iii) now is: 300 / (1+5%)10 = $ 184.17
So the rank of alternatives from most valuable to least valuable is:
(iii) > (ii) > (i)
c. What is your ranking if the interest rate is 20% per year?
Answer: the value of (i) now is: 100 / (1+20%) = $ 83.33
the value of (ii) now is: 200 / (1+20%)5 = $ 80.38
the value of (iii) now is: 300 / (1+20%)10 = $ 48.45
So the rank of alternatives from most valuable to least valuable is:
(i) > (ii) > (iii)。