英文版罗斯公司理财习题答案Chap020.pdf

CHAP TER 20 INTERNATIONAL CORPORATE FINANCE AnswerstoConceptsReview andCritical ThinkingQuestions 1. a. The dollar is selling at a premium because it is more expensive in the forward market than in thespotmarket (SFr 1.53versusSFr 1.50). b. The franc is expectedto depreciaterelativetothe dollar because it willtakemore francstobuy onedollar inthefuturethan it doestoday. c. Inflation in Switzerlandishigherthan intheUnited States,asarenominalinterestrates. 2. The exchangeratewillincrease,asit willtakeprogressively morepesostopurchase a dollar.Thisis therelativePPPrelationship. 3. a. TheAustralian dollar is expected toweaken relative tothe dollar,because it will take moreA$ inthefuturetobuy onedollarthan it doestoday. b. TheinflationrateinAustraliaishigher. c. Nominal interest rates in Australia are higher; relative real rates in the two countries are the same. 4. AYankeebondismost accurately describedby d. 5. No.For example,ifa country’scurrency strengthens,importsbecome cheaper (good),but itsexports becomemoreexpensivefor otherstobuy (bad).Thereverseistruefor currency depreciation. 6. Additional advantages include being closer to the final consumer and, thereby, saving on transportation, significantly lower wages, and less exposure to exchange rate risk. Disadvantages includepoliticalrisk andcostsofsupervisingdistant operations. 7. One key thing to remember is that dividend payments are made in the home currency. More generally, it may be that the owners of the multinational are primarily domestic and are ultimately concerned about their wealth denominated in their home currency because, unlike a multinational, they arenot internationally diversified. 8. a. False. If prices are rising faster in Great Britain, it will take more pounds to buy the same amount ofgoodsthat onedollar canbuy;thepoundwilldepreciaterelativetothed