FINA 4500 FINAL EXAM 2026 complete questions
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Terms in this set (234)
CHAPTER 1
1.The managers are the agents of the STOCKHOLDERS
firms, and _________ are its principals.
,2.Assume it is January 20X0. The $ 65,198,347
following table provides a forecast
of Zenith Inc's (an US company) cash
receipt in US dollars, Euros and
Pesos dollars for January 20X1 and
January 20X2. Also provided are the
exchange rate forecasts for Euros
and Pesos during the same time
periods.
January 20X1 January 20X2
Receipt Exchange Rate Receipt
Exchange Rate
US Dollars 15,000,000 NA 18,000,000
NA
Euros 13,000,000 $1.30 15,000,000
$1.10
Pesos 20,000,000 $0.15 30,000,000
$0.20
If Zenith's required rate of return is
10%, estimate the value of Zenith's
total cash receipt using the valuation
model for an MNC.
3.The chart below reports the dollar INCREASED
price of euro from 2006 to 2020.
Based on this chart, during the 2006
- 2008 period, the net cash flow of a
US firm which mostly produced its
goods in the US and sold them in
Europe would have_______.
, 4.The chart below reports the dollar DECREASED
price of euro from 2006 to 2020.
Based on this chart, during the 2006
- 2008 period, the net cash flow of a
US firm which mostly produced its
goods in Europe and sold them in
the US would have_______.
5.The chart below reports the dollar DECREASED
price of euro from 2006 to 2020.
Based on this chart, during the 2014 -
2015 period, the net cash flow of a
US firm which mostly produced its
goods in the US and sold them in
Europe would have_______.
6.The chart below reports the dollar INCREASED
price of euro from 2006 to 2020.
Based on this chart, during the 2014 -
2015 period, the net cash flow of a
US firm which mostly produced its
goods in Europe and sold them in
the US would have_______.
If the exchange rate goes from $1.85 DECREASED
per GBP to $1.95 per GBP, then the
net cash flows (profit) of a US based
firm which primarily imports its raw
material from UK will:
If the exchange rate goes from $1.45 DECREASED
per EUR to $1.30 per EUR, then the
net cash flows (profit) of a US based
firm which primarily sells its products
in Europe will:
( frequently tested) and answers| already graded
A+
Save
Terms in this set (234)
CHAPTER 1
1.The managers are the agents of the STOCKHOLDERS
firms, and _________ are its principals.
,2.Assume it is January 20X0. The $ 65,198,347
following table provides a forecast
of Zenith Inc's (an US company) cash
receipt in US dollars, Euros and
Pesos dollars for January 20X1 and
January 20X2. Also provided are the
exchange rate forecasts for Euros
and Pesos during the same time
periods.
January 20X1 January 20X2
Receipt Exchange Rate Receipt
Exchange Rate
US Dollars 15,000,000 NA 18,000,000
NA
Euros 13,000,000 $1.30 15,000,000
$1.10
Pesos 20,000,000 $0.15 30,000,000
$0.20
If Zenith's required rate of return is
10%, estimate the value of Zenith's
total cash receipt using the valuation
model for an MNC.
3.The chart below reports the dollar INCREASED
price of euro from 2006 to 2020.
Based on this chart, during the 2006
- 2008 period, the net cash flow of a
US firm which mostly produced its
goods in the US and sold them in
Europe would have_______.
, 4.The chart below reports the dollar DECREASED
price of euro from 2006 to 2020.
Based on this chart, during the 2006
- 2008 period, the net cash flow of a
US firm which mostly produced its
goods in Europe and sold them in
the US would have_______.
5.The chart below reports the dollar DECREASED
price of euro from 2006 to 2020.
Based on this chart, during the 2014 -
2015 period, the net cash flow of a
US firm which mostly produced its
goods in the US and sold them in
Europe would have_______.
6.The chart below reports the dollar INCREASED
price of euro from 2006 to 2020.
Based on this chart, during the 2014 -
2015 period, the net cash flow of a
US firm which mostly produced its
goods in Europe and sold them in
the US would have_______.
If the exchange rate goes from $1.85 DECREASED
per GBP to $1.95 per GBP, then the
net cash flows (profit) of a US based
firm which primarily imports its raw
material from UK will:
If the exchange rate goes from $1.45 DECREASED
per EUR to $1.30 per EUR, then the
net cash flows (profit) of a US based
firm which primarily sells its products
in Europe will:
