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Last post
Bankruptcy proceedings are carried out at special U.S. Bankruptcy Courts created by the Congress.
Bankruptcy proceedings are carried out at special U.S. Bankruptcy Courts created by the Congress.
True or false
minarkapadia   15   1 Reply
Medium
13 hours ago
Hudson Valley Distributors wants to be sure it has 10,000 cases of Beaujolais Nouveau to sell next ...
Hudson Valley Distributors wants to be sure it has 10,000 cases of Beaujolais Nouveau to sell next ...
Hudson Valley Distributors wants to be sure it has 10,000 cases of Beaujolais Nouveau to sell next November. In January, they enters into an agreement to buy the wine at a price of 34.62 euro per case. Payment will be due at the end of November. They
solina   17   2 Replies
2 days ago
Swenson Oil & Gas allows its customers to prepurchase heating oil in June for the coming winter. ...
Swenson Oil & Gas allows its customers to prepurchase heating oil in June for the coming winter. ...
Swenson Oil & Gas allows its customers to prepurchase heating oil in June for the coming winter. Customers who took advantage of the offer prepurchased 400,000 gallons of oil at $3.50 per gallon. Swenson hedged its position by contracting to purc
solina   13   2 Replies
2 days ago
Swenson Oil & Gas allows its customers to prepurchase heating oil in June for the coming winter. ...
Swenson Oil & Gas allows its customers to prepurchase heating oil in June for the coming winter. ...
Swenson Oil & Gas allows its customers to prepurchase heating oil in June for the coming winter. Customers who took advantage of the offer prepurchased 400,000 gallons of oil at $3.50 per gallon. Swenson hedged its position by contracting to purc
solina   13   2 Replies
2 days ago
Purchasing insurance coverage is not justified in cases where potential losses are unlikely, but ...
Purchasing insurance coverage is not justified in cases where potential losses are unlikely, but ...
Purchasing insurance coverage is not justified in cases where potential losses are unlikely, but potentially catastrophic.
True / False?
solina   19   2 Replies
Easy
2 days ago
Directors and officers insurance protects the company if key personnel die or leave the firm for ...
Directors and officers insurance protects the company if key personnel die or leave the firm for ...
Directors and officers insurance protects the company if key personnel die or leave the firm for other opportunities.
True / False?
solina   17   2 Replies
2 days ago
Workers' compensation insurance provides coverage for on-the-job injuries suffered by ...
Workers' compensation insurance provides coverage for on-the-job injuries suffered by ...
Workers' compensation insurance provides coverage for on-the-job injuries suffered by employees.
True / False?
solina   13   2 Replies
2 days ago
Which of the following risks would be the best candidate for self insurance?A) Potential malpractice ...
Which of the following risks would be the best candidate for self insurance?A) Potential malpractice ...
Which of the following risks would be the best candidate for self insurance?
A) Potential malpractice suits for a 5 doctor surgery group.
B) Fire insurance for a business that operates 3 restaurants.
C) Life insurance on the partners o
solina   12   2 Replies
2 days ago
Which of the following types of insurance does NOT involve a contract with an external party?A) ...
Which of the following types of insurance does NOT involve a contract with an external party?A) ...
Which of the following types of insurance does NOT involve a contract with an external party?
A) Property insurance
B) Life insurance
C) Directors and officers insurance
D) Self insurance
solina   13   2 Replies
2 days ago
In 2010, a deep water oil drilling rig owned by British Petroleum exploded in the Gulf of Mexico ...
In 2010, a deep water oil drilling rig owned by British Petroleum exploded in the Gulf of Mexico ...
In 2010, a deep water oil drilling rig owned by British Petroleum exploded in the Gulf of Mexico resulting in the deaths of several crew members, one of the worst ecological disasters in history, and major financial damage to the company. How could t
solina   20   2 Replies
2 days ago
Well managed firms will always seek to transfer as much risk as possible.True / False?
Well managed firms will always seek to transfer as much risk as possible.True / False?
Well managed firms will always seek to transfer as much risk as possible.
True / False?
solina   12   2 Replies
2 days ago
The optimal corporate risk management strategy is toA) avoid or transfer every possible risk.B) do ...
The optimal corporate risk management strategy is toA) avoid or transfer every possible risk.B) do ...
The optimal corporate risk management strategy is to
A) avoid or transfer every possible risk.
B) do nothing to transfer risk.
C) transfer about half the risk.
D) there is no strategy that is optimal for all firms.
solina   9   2 Replies
2 days ago
Eliminating all possible risk will ultimatelyA) guarantee the highest possible cash flow over the ...
Eliminating all possible risk will ultimatelyA) guarantee the highest possible cash flow over the ...
Eliminating all possible risk will ultimately
A) guarantee the highest possible cash flow over the long run.
B) cancel out all profits with cost of hedging.
C) result in lower expected cash flow but the highest cash flow for the worst
solina   8   2 Replies
2 days ago
An example of commodity risk would beA) volatile exchange rates with countries from which ...
An example of commodity risk would beA) volatile exchange rates with countries from which ...
An example of commodity risk would be
A) volatile exchange rates with countries from which commodities are imported.
B) the price of copper for electrical contractors.
C) volatile exchange rates with countries to which commodities are
solina   9   2 Replies
2 days ago
Briefly discuss the factors that multinational firms consider in arriving at capital structure ...
Briefly discuss the factors that multinational firms consider in arriving at capital structure ...
Briefly discuss the factors that multinational firms consider in arriving at capital structure decisions.
solina   9   2 Replies
2 days ago
Multinational corporations can have lower cost of capital and more continuous access to external ...
Multinational corporations can have lower cost of capital and more continuous access to external ...
Multinational corporations can have lower cost of capital and more continuous access to external finance compared to a domestic firm.
True / False?
solina   8   2 Replies
2 days ago
Millheim Electronics is an American firm operating in a country whose government refuses to allow ...
Millheim Electronics is an American firm operating in a country whose government refuses to allow ...
Millheim Electronics is an American firm operating in a country whose government refuses to allow Millheim to send its earnings out of the country. This is an example of repatriation of profits.
True / False?
solina   7   2 Replies
2 days ago
Because a large part of a subsidiary's equity funds comes from the parent, the subsidiary should ...
Because a large part of a subsidiary's equity funds comes from the parent, the subsidiary should ...
Because a large part of a subsidiary's equity funds comes from the parent, the subsidiary should use the same cost of equity as the parent.
True / False?
solina   12   2 Replies
2 days ago
Economic exposure refers to the overall impact of exchange rate changes on the value of the firm. ...
Economic exposure refers to the overall impact of exchange rate changes on the value of the firm. ...
Economic exposure refers to the overall impact of exchange rate changes on the value of the firm.
True / False?
solina   18   2 Replies
2 days ago
The most serious type of political risk involvesA) restrictive labor concerning hiring, wages and ...
The most serious type of political risk involvesA) restrictive labor concerning hiring, wages and ...
The most serious type of political risk involves
A) restrictive labor concerning hiring, wages and layoffs.
B) major changes in tax rates.
C) price and wage controls.
D) expropriation of assets with limited compensation.
solina   8   2 Replies
2 days ago
An important motive for direct foreign investment is toA) gain entry to markets with economies ...
An important motive for direct foreign investment is toA) gain entry to markets with economies ...
An important motive for direct foreign investment is to
A) gain entry to markets with economies growing faster than the U.S.
B) insulate the firm from fluctuations in the value of the dollar.
C) diversify political risks.
D) incre
solina   9   2 Replies
2 days ago
Risks of foreign direct investment potentially includeA) exchange rate fluctuations. B) political ...
Risks of foreign direct investment potentially includeA) exchange rate fluctuations. B) political ...
Risks of foreign direct investment potentially include
A) exchange rate fluctuations.
B) political instability.
C) competition from foreign competitors.
D) all of the above.
solina   8   2 Replies
2 days ago
When multinational companies evaluate capital investments in foreign countries, they discountA) ...
When multinational companies evaluate capital investments in foreign countries, they discountA) ...
When multinational companies evaluate capital investments in foreign countries, they discount
A) pre-tax earnings of the foreign subsidiary.
B) foreign earnings at home country discount rates.
C) only earnings that are expected to be t
solina   9   2 Replies
2 days ago
Some complexities of conducting international business includeA) multiple currencies. B) differing ...
Some complexities of conducting international business includeA) multiple currencies. B) differing ...
Some complexities of conducting international business include
A) multiple currencies.
B) differing legal requirements.
C) restrictions on repatriating earnings.
D) all of the above.
solina   8   2 Replies
2 days ago
Which of the following international business activities constitutes a foreign direct investment? ...
Which of the following international business activities constitutes a foreign direct investment? ...
Which of the following international business activities constitutes a foreign direct investment? All firms mentioned are U.S. based.
A) Yanqui Spirits imports a 1000 cases of rum from the Dominican Republic.
B) WMT Inc. opens a big-box ret
solina   10   2 Replies
2 days ago
Which of the following statements is true? A) Interest rate parity indicates that the forward ...
Which of the following statements is true? A) Interest rate parity indicates that the forward ...
Which of the following statements is true?
A) Interest rate parity indicates that the forward premium or discount should be greater than the differences in the national interest rates for securities of the same maturity.
B) Purchasing pow
solina   8   2 Replies
2 days ago
According to the international Fisher effect, if the nominal interest rate in Russia is 9.5% and the ...
According to the international Fisher effect, if the nominal interest rate in Russia is 9.5% and the ...
According to the international Fisher effect, if the nominal interest rate in Russia is 9.5% and the inflation rate is 8%, the real rate of interest is approximately
A) 18.26%.
B) 6.5%.
C) 1.5%.
D) -1.5%.
solina   11   2 Replies
2 days ago
According to the domestic Fisher effect, if the inflation rate is 5%, and the nominal rate of ...
According to the domestic Fisher effect, if the inflation rate is 5%, and the nominal rate of ...
According to the domestic Fisher effect, if the inflation rate is 5%, and the nominal rate of interest is 7%, the real rate of interest is
A) 2.00%.
B) 1.904%.
C) 4.65%.
D) 0.5252%.
solina   11   2 Replies
2 days ago
What is the difference between forward rates and spot rates? What is the purpose of forward ...
What is the difference between forward rates and spot rates? What is the purpose of forward ...
What is the difference between forward rates and spot rates? What is the purpose of forward contracts?
solina   12   2 Replies
2 days ago
A narrow spread indicates efficiency in the spot exchange market. True / False?
A narrow spread indicates efficiency in the spot exchange market. True / False?
A narrow spread indicates efficiency in the spot exchange market.
True / False?
solina   11   2 Replies
2 days ago
Spot exchange markets have the potential for arbitrage opportunities for a long period of time. True ...
Spot exchange markets have the potential for arbitrage opportunities for a long period of time. True ...
Spot exchange markets have the potential for arbitrage opportunities for a long period of time.
True / False?
solina   7   2 Replies
2 days ago
Transactions carried out in the foreign exchange markets can include direct or indirect exchange ...
Transactions carried out in the foreign exchange markets can include direct or indirect exchange ...
Transactions carried out in the foreign exchange markets can include direct or indirect exchange rate quotes.
True / False?
solina   7   2 Replies
2 days ago
The bid rate (also called the offer rate) is the number of units of home currency paid to a customer ...
The bid rate (also called the offer rate) is the number of units of home currency paid to a customer ...
The bid rate (also called the offer rate) is the number of units of home currency paid to a customer in exchange for their foreign currency.
True / False?
solina   8   2 Replies
2 days ago
A direct quote in Bombay tells one how many British pounds can buy one Indian rupee. True / False?
A direct quote in Bombay tells one how many British pounds can buy one Indian rupee. True / False?
A direct quote in Bombay tells one how many British pounds can buy one Indian rupee.
True / False?
solina   11   2 Replies
2 days ago
The foreign exchange market is similar in form to the New York Stock Exchange. True / False?
The foreign exchange market is similar in form to the New York Stock Exchange. True / False?
The foreign exchange market is similar in form to the New York Stock Exchange.
True / False?
solina   9   2 Replies
2 days ago
A cross rate is the computation of an exchange rate for a currency from the exchange rates of two ...
A cross rate is the computation of an exchange rate for a currency from the exchange rates of two ...
A cross rate is the computation of an exchange rate for a currency from the exchange rates of two other countries.
True / False?
solina   9   2 Replies
2 days ago
A dealer in New York offers to buy U.K. pounds for $1.4500 and sell them for $1.4522. The different ...
A dealer in New York offers to buy U.K. pounds for $1.4500 and sell them for $1.4522. The different ...
A dealer in New York offers to buy U.K. pounds for $1.4500 and sell them for $1.4522. The different prices are due to
A) arbitrage.
B) a tax on currency transactions.
C) the bid-ask spread.
D) supply and demand.
solina   7   2 Replies
2 days ago
Forward exchange ratesA) reduce uncertainty about future value of currencies. B) are always slightly ...
Forward exchange ratesA) reduce uncertainty about future value of currencies. B) are always slightly ...
Forward exchange rates
A) reduce uncertainty about future value of currencies.
B) are always slightly lower than the spot rate.
C) reflect expectations about the future value of currencies.
D) both A and C.
solina   8   2 Replies
2 days ago
The following are the prices in the foreign exchange market between the U.S. dollar and a foreign ...
The following are the prices in the foreign exchange market between the U.S. dollar and a foreign ...
The following are the prices in the foreign exchange market between the U.S. dollar and a foreign currency (fc). Spot 0.6335US$/fc; three-month forward 0.6375US$/fc. What was the discount or premium on three-month forward for the foreign currency?
solina   8   2 Replies
2 days ago
Assume that an importer of wine were to purchase 5,000 cases of premium French Bordeaux for 700,000 ...
Assume that an importer of wine were to purchase 5,000 cases of premium French Bordeaux for 700,000 ...
Assume that an importer of wine were to purchase 5,000 cases of premium French Bordeaux for 700,000 euro. Further assume that the quoted exchange rates are as follows: spot rate = .9542 euro to the U.S. dollar; 30-day forward rate = .9502 euro to the
solina   10   2 Replies
2 days ago
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