Question 1

Which of the following is NOT a key variable in the equation for the capital asset pricing model?

Accepted Answer

A) the risk-free rate of interest 
B) the expected rate of return on the market portfolio 
C) the marginal tax rate 
D) All are important components of the CAPM. 
A) the risk-free rate of interest 
B) the expected rate of return on the market portfolio 
C) the marginal tax rate 
D) All are important components of the CAPM.

Question 2

Which of the following statements is NOT true regarding MNEs when compared to purely domestic firms?

Accepted Answer

A) MNEs tend to rely more on short and intermediate term debt. 
B) MNEs have greater foreign exchange risk. 
C) MNEs have greater costs of asymmetric information. 
D) MNEs have higher agency costs. 
A) MNEs tend to rely more on short and intermediate term debt. 
B) MNEs have greater foreign exchange risk. 
C) MNEs have greater costs of asymmetric information. 
D) MNEs have higher agency costs.

Question 3

Which of the following is NOT a contributing factor to the segmentation of capital markets?

Accepted Answer

A) excessive regulatory control 
B) perceived political risk 
C) anticipated foreign exchange risk 
D) All of the above are contributing factors. 
A) excessive regulatory control 
B) perceived political risk 
C) anticipated foreign exchange risk 
D) All of the above are contributing factors.

Which of the following is NOT a key variable in the equation for the capital asset pricing model?

Which of the following statements is NOT true regarding MNEs when compared to purely domestic firms?

Which of the following is NOT a contributing factor to the segmentation of capital markets?

Multinational Financial Management: Opportunities and Challenges

The International Monetary System

The Balance of Payments

Financial Goals and Corporate Governance

The Foreign Exchange Market

International Parity Conditions

Foreign Currency Derivatives: Futures and Options

Interest Risk and Swaps

Foreign Exchange Rate Determination

Transaction Exposure

Translation Exposure

Operating Exposure

Raising Equity and Debt Globally

Multinational Tax Management

International Trade Finance

Foreign Direct Investment and Political Risk

Multinational Capital Budgeting and Cross-Border Acquisitions

Filters

Exam 13: The Global Cost and Availability of Capital

Which of the following is NOT a key variable in the equation for the capital asset pricing model?

Which of the following statements is NOT true regarding MNEs when compared to purely domestic firms?

Which of the following is NOT a contributing factor to the segmentation of capital markets?

Multinational Financial Management: Opportunities and Challenges

The International Monetary System

The Balance of Payments

Financial Goals and Corporate Governance

The Foreign Exchange Market

International Parity Conditions

Foreign Currency Derivatives: Futures and Options

Interest Risk and Swaps

Foreign Exchange Rate Determination

Transaction Exposure

Translation Exposure

Operating Exposure

Raising Equity and Debt Globally

Multinational Tax Management

International Trade Finance

Foreign Direct Investment and Political Risk

Multinational Capital Budgeting and Cross-Border Acquisitions

Filters