跨国财务管理17跟18节.pptVIP

1.The financial manager’s responsibility involves: a) increasing the per share price of the company’s stock at any cost and by any means, ways and fashion that is possible b) the shareholder wealth maximization c) which capital projects to select d) b and c 2. Capital budgeting analysis is very important, because it: a) involves, usually expensive, investments in capital assets b) has to do with the productive capacity of a firm c) will determine how competitive and profitable a firm will be d) all of the above 3.In the APV model a) b) c) d) a) interest tax shields are discounted at i b) operating cash flows are discounted at Ku c) depreciation tax shields are discounted at i d) all of the above 4.In the context of the capital budgeting analysis of an MNC that has strong foreign competitors, “lost sales” refers to: a) the cannibalization of existing projects by new projects b) the entire sales revenue of a new foreign manufacturing facility representing the incremental sales revenue of the new project c) a) and b) d) none of the above 5. The adjusted present value (APV) model that is suitable for an MNC is the basic net present value (NPV) model expanded to: a) distinguish between the market value of a levered firm and the market value of an unlevered firm b) discern the blocking of certain cash flows by the host country from being legally remitted to the parent c) consider foreign currency fluctuations or extra taxes imposed by the host country on foreign exchange remittances d) all of the above 2. Solution: HUF250(1 + .10)5/(1 + .03)5 = HUF347.31/$1.00 3.Solution: (a) K = (1 - .40).12 + (.40).08(1 - .35) = .0928 or 9.28% (b) A weighted-average cost of capital of 9.28% for a levered firm implies: K =.0928 = Ku (1-(.35)(.40)). Solving for Ku yields .1079 or 10.79%. 4.The dollar value of the concessionary loan is $2,678,574 = DKK15,000,000 ÷ 5.60. The dollar p