Exam 15: Multinational Restructuring

The adoption of the euro as the local currency by several European countries has ___________ capital budgeting analysis for an MNC that is comparing possible target firms in those countries.

(Multiple Choice)

4.8/5

(38)

Question 21

According to your text,many more international acquisitions are taking place in __________, Partially because of more uniform standards and the momentum for free enterprise.

(Multiple Choice)

4.9/5

(37)

Question 22

An MNC that plans to acquire a target would prefer to time its bid for the target when the local stock market prices are generally high.

(True/False)

4.8/5

(38)

Question 23

Which of the following factors is least likely to cause the required rate of return to vary among MNCs assessing the same foreign target

(Multiple Choice)

4.9/5

(40)

Question 24

The initial outlay for a project in a foreign country may decline if property values in that country decline.

(True/False)

4.8/5

(41)

Question 25

If potential acquirers are based in different countries,their required rates of return when considering a specific target will only vary if the desired use of the target is different.

(True/False)

5.0/5

(38)

Question 26

The value of an MNC (from the parent's perspective)is independent of the MNC's desired scheduling of remitted funds from the target.

(True/False)

5.0/5

(39)

Question 27

Acquirers may have different required rates of return because of differences in the ability to use financial leverage.

(True/False)

4.9/5

(39)

Question 28

The U.S.is one of the few countries with agencies that monitor mergers and acquisitions.

(True/False)

4.9/5

(43)

Question 29

An MNC should periodically reassess its investments to determine whether to divest them.

(True/False)

4.8/5

(39)

Question 30

The earnings of a private European firm are €5 million,and the average P/E ratio of publicly traded European firms in the same industry is 12.This firm is considering the possibility of going public in which it would issue one million shares.If the private firm has similar growth potential and other characteristics similar to other publicly traded firms in the industry,its value can be estimated as ______ million euros.

(Multiple Choice)

4.8/5

(40)

Question 31

Other things being equal,a foreign subsidiary in China would more likely be divested by the U.S.parent if new information caused the parent to suddenly anticipate that:

(Multiple Choice)

4.8/5

(33)

Question 32

Premiums required to entice a target's board of directors to approve an acquisition are usually between 1 and 3 percent of the target's market price.

(True/False)

4.7/5

(32)

Question 33

If an MNC targets a successful foreign company with plans to continue the target's local business in a more efficient manner,the risk of the business will be relatively _,and therefore the MNC's required return from acquiring the target will be relatively _.

(Multiple Choice)

4.8/5

(40)

Question 34

Which of the following is not an advantage of international acquisitions over the establishment of a new subsidiary

(Multiple Choice)

4.8/5

(29)

Question 35

Which of the following is not a reason that the initial outlay for acquiring a firm in Asia was lower as a result of the Asian crisis

(Multiple Choice)

4.9/5

(43)

Question 36

Regarding the valuation of privatized business in less developed countries,__________ can normally be estimated with a high degree of accuracy.

(Multiple Choice)

4.8/5

(41)

Question 37

Even after an MNC's accept/reject decision of a foreign acquisition has been made,it should be reassessed at various times.In fact,this analysis may indicate that a previously accepted project should be divested.

(True/False)

5.0/5

(33)

Question 38

At present,U.S.firms acquire more targets in the former Soviet Union than in any other country.

(True/False)

4.7/5

(33)

Question 39

Based on information in your text,the following factors should be considered in an international acquisition,except:

(Multiple Choice)

4.9/5

(33)

Question 40

Showing 21 - 40 of 52

The adoption of the euro as the local currency by several European countries has ___________ capital budgeting analysis for an MNC that is comparing possible target firms in those countries.

According to your text,many more international acquisitions are taking place in __________, Partially because of more uniform standards and the momentum for free enterprise.

An MNC that plans to acquire a target would prefer to time its bid for the target when the local stock market prices are generally high.

Which of the following factors is least likely to cause the required rate of return to vary among MNCs assessing the same foreign target

The initial outlay for a project in a foreign country may decline if property values in that country decline.

If potential acquirers are based in different countries,their required rates of return when considering a specific target will only vary if the desired use of the target is different.

The value of an MNC (from the parent's perspective)is independent of the MNC's desired scheduling of remitted funds from the target.

Acquirers may have different required rates of return because of differences in the ability to use financial leverage.

The U.S.is one of the few countries with agencies that monitor mergers and acquisitions.

An MNC should periodically reassess its investments to determine whether to divest them.

Other things being equal,a foreign subsidiary in China would more likely be divested by the U.S.parent if new information caused the parent to suddenly anticipate that:

Premiums required to entice a target's board of directors to approve an acquisition are usually between 1 and 3 percent of the target's market price.

If an MNC targets a successful foreign company with plans to continue the target's local business in a more efficient manner,the risk of the business will be relatively _,and therefore the MNC's required return from acquiring the target will be relatively _.

Which of the following is not an advantage of international acquisitions over the establishment of a new subsidiary

Which of the following is not a reason that the initial outlay for acquiring a firm in Asia was lower as a result of the Asian crisis

Regarding the valuation of privatized business in less developed countries,__________ can normally be estimated with a high degree of accuracy.

Even after an MNC's accept/reject decision of a foreign acquisition has been made,it should be reassessed at various times.In fact,this analysis may indicate that a previously accepted project should be divested.

At present,U.S.firms acquire more targets in the former Soviet Union than in any other country.

Based on information in your text,the following factors should be considered in an international acquisition,except:

Multinational Financial Management: An Overview

International Flow of Funds

International Financial Markets

Exchange Rate Determination

Currency Derivatives

Government Influence on Exchange Rates

International Arbitrage and Interest Rate Parity

Relationships among Inflation,Interest Rates,and Exchange Rates

Forecasting Exchange Rates

Measuring Exposure to Exchange Rate Fluctuations

Managing Transaction Exposure

Managing Economic Exposure and Translation Exposure

Direct Foreign Investment

Multinational Capital Budgeting

Country Risk Analysis

Multinational Cost of Capital and Capital Structure

Long-Term Financing

Financing International Trade

Short-Term Financing

International Cash Management

Filters

Exam 15: Multinational Restructuring

The adoption of the euro as the local currency by several European countries has ___________ capital budgeting analysis for an MNC that is comparing possible target firms in those countries.

According to your text,many more international acquisitions are taking place in __________, Partially because of more uniform standards and the momentum for free enterprise.

An MNC that plans to acquire a target would prefer to time its bid for the target when the local stock market prices are generally high.

Which of the following factors is least likely to cause the required rate of return to vary among MNCs assessing the same foreign target

The initial outlay for a project in a foreign country may decline if property values in that country decline.

If potential acquirers are based in different countries,their required rates of return when considering a specific target will only vary if the desired use of the target is different.

The value of an MNC (from the parent's perspective)is independent of the MNC's desired scheduling of remitted funds from the target.

Acquirers may have different required rates of return because of differences in the ability to use financial leverage.

The U.S.is one of the few countries with agencies that monitor mergers and acquisitions.

An MNC should periodically reassess its investments to determine whether to divest them.

Other things being equal,a foreign subsidiary in China would more likely be divested by the U.S.parent if new information caused the parent to suddenly anticipate that:

Premiums required to entice a target's board of directors to approve an acquisition are usually between 1 and 3 percent of the target's market price.

If an MNC targets a successful foreign company with plans to continue the target's local business in a more efficient manner,the risk of the business will be relatively _______,and therefore the MNC's required return from acquiring the target will be relatively _______.

Which of the following is not an advantage of international acquisitions over the establishment of a new subsidiary

Which of the following is not a reason that the initial outlay for acquiring a firm in Asia was lower as a result of the Asian crisis

Regarding the valuation of privatized business in less developed countries,__________ can normally be estimated with a high degree of accuracy.

Even after an MNC's accept/reject decision of a foreign acquisition has been made,it should be reassessed at various times.In fact,this analysis may indicate that a previously accepted project should be divested.

At present,U.S.firms acquire more targets in the former Soviet Union than in any other country.

Based on information in your text,the following factors should be considered in an international acquisition,except:

Multinational Financial Management: An Overview

International Flow of Funds

International Financial Markets

Exchange Rate Determination

Currency Derivatives

Government Influence on Exchange Rates

International Arbitrage and Interest Rate Parity

Relationships among Inflation,Interest Rates,and Exchange Rates

Forecasting Exchange Rates

Measuring Exposure to Exchange Rate Fluctuations

Managing Transaction Exposure

Managing Economic Exposure and Translation Exposure

Direct Foreign Investment

Multinational Capital Budgeting

Country Risk Analysis

Multinational Cost of Capital and Capital Structure

Long-Term Financing

Financing International Trade

Short-Term Financing

International Cash Management

Filters

If an MNC targets a successful foreign company with plans to continue the target's local business in a more efficient manner,the risk of the business will be relatively _,and therefore the MNC's required return from acquiring the target will be relatively _.