Business Finance Help for College and University Students

international finance

Find the present value and forward value

The economic risk of international investments exceeds that of domestic investments due to

The economic risk of international investments exceeds that of domestic investments due to: a. reduced ability of a firm to forecast adverse factors in a foreign economy b. lack of diversification benefits from foreign investments c. non-existence of economic risk in a domestic investment d. a and b

A common stock whose dividends are expected t decline indefinitely at a constant rate will have

A common stock whose dividends are expected t decline indefinitely at a constant rate will have: a. a zero value b. a zero capital gains yield component of its RRR c. none of the above

The following is not a consequence of a weakening foreign currency

The following is not a consequence of a weakening foreign currency: a. Fewer dollars received from a currency receivable situation b. More dollars paid in a currency payable situation c. Increasing competitiveness of U>S> goods versus foreign goods d. b and c

Which of the following can cause capital rationing?

Which of the following can cause capital rationing? a. the lack of sufficient investment proposals with positive NPVs b. the lack of sufficient investment proposals with negative NPVs c. a and c d. none of the above

If a firm is evaluating two mutually exclusive investment proposals whose lives are both unequal and shorter than the firm's production horizon, the firm should

If a firm is evaluating two mutually exclusive investment proposals whose lives are both unequal and shorter than the firm's production horizon, the firm should: a. extend the investment's lives to equal the production horizon b. evaluate the investment's cash flows only over the life of the shorterlived investment c. eval ...continues

Finance

Which of the following is an example of a general covenant in a long-term loan agreement? a. asset quality requirement b. working capital restriction c. dividend limitation d. all of the above

The risk of technology obsolescence of a leased asset is

The risk of technology obsolescence of a leased asset is a. eliminated b. a determinant of the lease payments c. shifted to the lease e. none of the above

Conversion of convertible bonds

Successful forced conversion of convertible bonds through a call requires that a. call price exceed par value b. conversion value exceed call price c. bond value exceed conversion value

Explicit agency cost

The following is an example of an explicit agency cost a. the requirement that the firm's finances are audited c. expected bankruptcy costs c. bad debts