Managements expectation that the local foreign currency

Assignment Help Financial Management
Reference no: EM131050881

A short-term financial decision based on an MNC management's expectation that the local foreign currency will appreciate may be A. increasing local customers' accounts receivable and increasing local notes payable. B. increasing local accounts receivable and decreasing local accounts payable. C. increasing local inventories and increasing local notes payable. D. decreasing local notes receivable and decreasing accruals.

Reference no: EM131050881

Questions Cloud

The dividends are expected to grow : Thirsty Cactus Corp just paid a dividend of 1.60 per share. The dividends are expected to grow at 25 percent for the next 7 years and then level off to a 6 percent growth rate indefinitely. format to 4 decimal places. Required: If the required return..
Mature manufacturing firm : Hardwoods, Inc. is a mature manufacturing firm. The company just paid a $10 dividend, but management expects to reduce the payout by 9 percent each year, indefinitely. How much are you willing to pay today per share to buy this stock if you require a..
Identify four annual rates on curve both on axes-yield curve : Based on economists’ forecasts and analysis, 1-year Treasury bill rates and liquidity premiums for the next four years are expected to be as follows: R1 = 1.50% E(2r1) = 2.40% L2 = 0.06% E(3r1) = 2.80% L3 = 0.08% E(4r1) = 3.25% L4 = 0.13% Using the l..
Investments will produce the after-tax cash flows : Your division is considering two investment projects, each of which requires an up-front expenditure of $25 million. You estimate that the cost of capital is 12% and that the investments will produce the following after-tax cash flows (in millions of..
Managements expectation that the local foreign currency : A short-term financial decision based on an MNC management's expectation that the local foreign currency will appreciate may be A. increasing local customers' accounts receivable and increasing local notes payable. B. increasing local accounts receiv..
Assume that the six-month treasury spot rate : Assume that the six-month Treasury spot rate is 1.6% APR, and the one-year rate is 2%, both compounded semiannually. What is the price of a one-year $1000 par Treasury with 2% coupons?
Find the crossover rate : Company is considering investing in two projects. The first project is the Tumbler project which is expected to cost $50 million and will result in cash flows of $60 million, $90 million and $20 million at the end of 1st, 2nd and 3rd year. Find the c..
What price would you be willing to pay for share of stock : Suppose Acap Corporation will pay a dividend of $2.73 per share at the end of this year and $3.06 per share next year. You expect Acap’s stock price to be $53.83 in two years. Assume that Acap’s equity cost of capital is 8.6%. What price would you be..
Use corporate debt in financial decision making : Give the name and reasoning of a real-life company who chose to use corporate debt (i.e. bonds) in financial decision making. Research and provide a recent example (within last 1-2 years) of a business choosing to use this method of financial leverag..

Reviews

Write a Review

Financial Management Questions & Answers

  The stock of flop industries is trading

The stock of flop industries is trading at $43. you feel the stock price will decline, so you short 700 shares at an initial margin of 70 percent. if the maintenance margin is 40 percent, at what share price will you receive a margin call?

  What is the corporations marginal tax rate

A corporation’s pretax net income of $1,000,000 is taxable based on 30% of the first $300,000, 35% of the next $300,000, and 40% of the balance: What is the corporation’s average tax rate? What is the corporation’s marginal tax rate?

  Consider two projects with the cash flows

Consider two projects with the following cash flows: Project S is a 4 year project with initial (time 0) cash outflow of 3000 and time 1 through 4 cash inflows of 1500, 1200, 800 and 300 respectively.

  Percentage increase in net worth of your brokerage account

Suppose that Intel currently is selling at $64 per share. You buy 500 shares using $20,000 of your own money, borrowing the remainder of the purchase price from your broker. The rate on the margin loan is 7%. What is the percentage increase in the ne..

  Capital gains yield and dividend yield

Suppose you know a company's stock currently sells for $70 per share and the required return on the stock is 16 percent. You also know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield. If it's th..

  The domestic and foreign risk-free interest rates

A currency is currently worth $1.80 and has a volatility of 15%. The domestic and foreign risk-free interest rates are 5% and 2%, respectively. Use a two-step binomial tree to value a) a European four-month put option with a strike price of $1.79, an..

  Expansion to double production of current producn

Suppose the company in #1 is considering the following expansion projects. How would you calculate the required rate of return to use in the NPV analysis of the following: Explain. The company is considering an expansion to double the production of i..

  Contrast the four basic types of competition

Define, compare, and contrast the four basic types of competition. Then, pick an industry (other than those used in exhibit 3.6) and describe the different types using firms and products in that industry.

  What is the maximum sustainable growth rate

Bunge Corp. is expected to maintain the same payout ratio in the future as in the current year (problem #7), and the expected return on new investments for Bunge is 10%. What is the maximum sustainable growth rate for Bunge’s dividends in the long ru..

  Suppose the initial margin on heating oil futures

Suppose the initial margin on heating oil futures is $12,500, the maintenance margin is $11,000 per contract, and you establish a long position of 15 contracts today, where each contract represents 36,000 gallons. Tomorrow, the contract settles down ..

  What is the present value of your firms cash flows for years

Your consulting firm will produce cash flows of $130,000 this year, and you expect cash flow to keep pace with any increase in the general level of prices. The interest rate currently is 6.6%, and you anticipate inflation of about 2.6%. What is the p..

  What is the gain or loss on the sale of the asset

A fixed asset has an original cost of $32,000 and is three-fourths depreciated. The asset is sold for $10,000 – show how you derived your answer. What is the gain (+) or loss (-) on the sale of the asset. What amount is recorded in the CFO section of..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd