FIN419T Week 5 Apply Assessment - SCORE 100 PERCENT

Question 1

Which one of the following best describes an agreement you make today to exchange U.S. dollars for British pounds three months from now?

Multiple Choice

    Forward trade

    Spot trade

    Arbitrage transaction

    Cross-rate exchange

    Eurocurrency transaction

 

Question 2

Eurobonds are best defined as international bonds issued in _____ and denominated in ____.

Multiple Choice

    a single country; multiple currencies

    a single country; a single currency

    multiple countries; multiple currencies

    multiple countries; a single currency

    Euroland; euros

 

Question 3

Assume you can exchange $1 for either €.8031 euro or £.6390. What is the cross-rate between the pound and the euro?

Multiple Choice

    £.7519/€1

    £.8356/€1

    £.7957/€1

    £1.0852/€1

    £1.5577/€1

 

Question 4

Which one of the following is an example of the political risks associated with foreign operations?

Multiple Choice

    Technological changes

    Exchange rate fluctuations

    Translation exposure to exchange rate risk

    Changes in foreign tax laws

    Changes in relative wage rates between the home country and the foreign country

 

Question 5

An American Depositary Receipt is defined as a security:

Multiple Choice

    that has been deposited in an interest-bearing account at a U.S. bank.

    issued outside the U.S. that represents shares of a U.S. stock.

    issued in the U.S. that represents shares of a foreign stock.

    that has a guarantee of payment from a U.S. bank.

    issued in multiple countries but denominated in U.S. currency.

 

Question 6

Which statement is correct?

Multiple Choice

    Exchange rates are adjusted each morning and held constant until the following morning.

    The four most commonly traded currencies in the foreign exchange markets are the U.S. dollar, French franc, European euro, and Brazilian real.

    All South American countries use the peso as their currency.

    New Zealand uses the same currency as Australia and that is the A$.

    The foreign exchange market is the largest financial market in the world.

 

Question 7

Short-run exposure to exchange rate risk is best illustrated by which one of the following?

Multiple Choice

    Change in book value when the market value of an asset remains constant

    Daily fluctuations in the spot rate

      Increases in the forward rate as the time to settlement increases

    Changes in relative economic conditions between two countries

    Unrealized foreign exchange gains

 

Question 8

Which one of the following terms is used to identify the concept that exchange rates vary to keep purchasing power constant among currencies?

Multiple Choice

    Exchange rate equilibrium

    Exchange rate parity

    Universal parity

    Market equilibrium

    Purchasing power parity

 

Question 9

Suppose a U.S. firm builds a factory in China, staffs it with Chinese workers, uses materials supplied by Chinese companies, and finances the entire operation with a loan from a Chinese bank located in the same town as the factory. This firm is most likely trying to greatly reduce, or eliminate, which one of the following?

Multiple Choice

    Interest rate disparities

    Short-run exposure to exchange rate risk

    Long-run exposure to exchange rate risk

    Political risk associated with the foreign operations

    Translation exposure to exchange rate risk

 

Question 10

The market where euros, pesos, dollars, and pounds are traded is referred to as the:

Multiple Choice

    ADR market.

    LIBOR market.

    gilt market.

    euromarket.

    foreign exchange market.

 

Question 11

Which country is correctly matched with its currency?

Multiple Choice

    Canada—pound

    China—yuan

    Mexico—real

    Japan—lira

    United Kingdom—euro

 

Question 12

A trader in Switzerland just agreed to trade Swiss francs for British pounds based on today's exchange rate. The trade is expected to settle tomorrow. What term best describes this exchange?

Multiple Choice

    Arbitrage transaction

    Forward trade

    Spot trade

    Purchasing power parity

    Interest rate parity

 

Question 13

An agreement to exchange currencies sometime in the future is referred to as which one of the following?

Multiple Choice

    Forward trade

    Hedge

    Gilt

    Forward exchange rate

    Spot trade

 

Question 14

Which one of the following is the rate that most international banks charge when they loan Eurodollars to other banks?

Multiple Choice

    ADR

    LIBOR

    Cross-rate

    Gilt rate

    Swap rate

 

Question 15

You are given the exchange rate between the U.S. dollar and the Canadian dollar. You are also given the exchange rate between the U.S. dollar and the Mexican peso. What is the name given to the Canadian dollar per Mexican peso exchange rate derived from the information that was provided?

Multiple Choice

    Swap rate

    Depositary rate

    Forward rate

    London Interbank rate

    Cross-rate

Question 16

Assume the exchange rates in New York for $1 are C$1.1382 and £.6387 while in Toronto, C$1 will buy £.5612. How much profit can you earn on $10,000 using triangle arbitrage?

Multiple Choice

    $.91

    $1.08

    $.97

    $1.03

    $1.11

 

Question 17

Assume the exchange rate is 1.05 Swiss francs per U.S. dollar. How many U.S. dollars are needed to purchase 1,250 Swiss francs?

Multiple Choice

    $1,315.79

    $1,190.48

    $1,128.80

    $1,140.00

    $1,318.46

 

Question 18

Which of these is defined as an agreement to exchange two securities or two currencies?

Multiple Choice

    Hedge

    Swap

    SWIFT

    Gilt

    Arbitrage

 

Question 19

Assume the SEC approved the registration statement for a new securities issue this morning. Which one of the following statements must be true about this issue?

Multiple Choice

    The red herrings can finally be distributed as their distribution was awaiting SEC approval.

    The waiting period started when the approval was received this morning.

    The SEC believes the issue will be a profitable investment for all purchases made at the offer price.

    The issuer is following all the required rules and regulations in regard to this issue.

    The final prospectuses have all been delivered or the SEC would not have approved the issue.

 

Question 20

Which one of the following is probably the most effective means of increasing investors' interest in an IPO?

Multiple Choice

    Extending the lockup period

    Issuing the IPO through a rights offering

    Underpricing the IPO

   Eliminating the quiet period

 Eliminating the Green Shoe option

 

Question 21

An initial public offering refers to:

Multiple Choice

    the shares held by a firm's founder.

    the most recently issued shares that were offered to the firm's existing shareholders.

   any shares issued to the public on a cash basis.

   the first sale of equity shares to the general public.

   all shares issued prior to the firm going public.

 

Question 22

Currently, you own 1.2 percent of the outstanding shares of Home Security. The firm has decided to issue additional shares of stock and has given you the first option to purchase 1.2 percent of those additional shares. What type of offer is this?

Multiple Choice

    Rights offer

     Red herring offer

   Private placement

    IPO

    General cash offer

 

Question 23

What is the legal document called that is provided to potential investors and describes a new security offering?

Multiple Choice

    Security agreement

    Prospectus

    Public statement

    Registration statement

    Formal filing

 

Question 24

GW Underwriters retains the difference between its buying price and its offering price on new securities. What is this amount called?

Multiple Choice

    Markup

    Commission

    Rights price

    Spread

    Offer

 

Question 25

What is the group of underwriters called who share both the risks and the marketing responsibilities for a securities offering?

Multiple Choice

    Syndicate

    Underwriting cartel

   Firm commitment group

    Dutch auction group

    Venture capitalists

 

   

 

 

FIN419T Week 4 Apply Assessment SCORE 90 PERCENT

Question 1

Part 1

 

Peter Johnson, the CFO of Homer Industries, Inc is trying to determine the Weighted Cost of Capital (WACC) based on two different capital structures under consideration to fund a new project. Assume the company's tax rate is 30%.

 

Component	Scenario 1	Scenario 2	Cost of Capital	Tax Rate
Debt	$4,000,000.00	$1,000,000.00	8%	30%
Preferred Stock	1,200,000.00	1,500,000.00	10%
Common Stock	1,000,000.00	3,700,000.00	13%
Total	$6,200,000.00	$6,200,000.00

 

1-a. Complete the table below to determine the WACC for each of the two capital structure scenarios. (Enter your answer as a whole percentage rounded to 2 decimal places (e.g. .3555 should be entered as 35.55).)

 

	Scenario 1 Weight %	Scenario 2 Weight %	Scenario 1 Weighted Cost	Scenario 2 Weighted Cost	Cost of Capital	Tax Rate
Debt
Preferred Stock
Common Stock
Total

 

1-b. Which capital structure shall Mr. Johnson choose to fund the new project?

 

multiple choice 1

• Scenario 1
• Scenario 2

 

Part 2

 

Assume the new project's operating cash flows for the upcoming 5 years are as follows:

 

	Project A
Initial Outlay	$ -6,200,000.00
Inflow year 1	1,270,000.00
Inflow year 2	1,750,000.00
Inflow year 3	1,980,000.00
Inflow year 4	2,160,000.00
Inflow year 5	2,450,000.00
WACC	?

 

2-a. What are the WACC (restated from Part 1), NPV, IRR, and payback years of this project? (Negative values should be entered with a minus sign. All answers should be entered rounded to 2 decimal places. Your answers for WACC and IRR should be whole percentages (e.g. .3555 should be entered as 35.55).)

WACC (from Part 1)
NPV
IRR
Payback Method

 

2-b. Shall the company accept or reject this project based on the outcome using the net present value (NPV) method?

 

 

PM598 Week 3 Apply Signature Assignment Project Management Plan

Assignment Content

Top of Form

Continue working on the individual project you started in Week 1 and 2 to accomplish the assignment below: 

Write a paper of no more than 2,100 words and include the following components:

Project Risk Management Plan 

• Examine at least 5 risks applicable to your project.
• Create a table in Microsoft^® Word for your risk assessment matrix. For each risk, analyze its likelihood and probability, its effect, an overall risk assessment score, when it could occur, and your response. 

Project HR Plan

• Analyze HR needs, how they are acquired, and when they will occur.
• Examine your training approach and how you plan to recognize and reward the team's efforts.

Project Communication Plan

• Examine key stakeholder groups and their project information needs.
• Create a table in Microsoft^® Word, evaluating the following information that is produced during the project's lifecycle: status and issue reports; the target audience for each information type, including senior management and customers; when each information type is available (weekly or biweekly); how information is communicated (e-mail or hard copy); and who is responsible for producing information.

Project Procurement Plan

• Examine the methods that will be used to manage procurements in the project.
• Examine at least one contract vehicle that might be used.

 

Incorporate your facilitator's feedback into the plans and include the revised versions in your final project.

Submit your assignment.

  

MKT421T Week 5 Apply Course Post Assessment SCORE 100 PERCENT

Question 1

In the late 1950s and 1960s, television Westerns were extremely popular and included Gunsmoke, Bonanza, Wagon Train, and The Big Valley. When ratings declined as viewers' tastes changed, production companies used a(n) __________ strategy and stopped producing all television Westerns when the networks stopped showing them.

Multiple Choice

    diversification

    aggregation

    segmentation

    deletion

 

Question 2

The United States Army was both praised and criticized for its use of a popular video game, America's Army, which was designed to reach potential recruits. The game's creator, Colonel Casey Wardynski, wanted to provide a sense of the training and teamwork one could find in the Army's military environment. The game was designed for "boys 14 years or older," which represent the Army's

Multiple Choice

 

    mass market.

    actual recruits.

    restricted market.

    target market.

 

Question 3

A small electronics company has begun production of a small line of high-quality, professional studio-model components targeted at audiophiles who shop at thousands of specialty stores across the United States. How should the small electronics company best distribute its new products?

Multiple Choice

 

    Use its established indirect marketing channel.

    Distribute directly to mass market consumers.

    Distribute through agents that sell to specialty electronics stores that will feature the new line.

    Sell directly to specialty electronics stores that will feature the new line.

    Establish its own chain of electronics retail stores.

 

Question 4

Sherrie sold about $800 worth of produce last weekend at a farmer's market, but it was sunny and warm both days. This Saturday and Sunday are both supposed to be rainy, so she thinks fewer people will attend. She estimates she'll only sell about three-fourths of her total for last time, or $600. This is an example of a(n)

Multiple Choice

    direct forecast.

    lost-horse forecast.

    buyers' intentions forecast.

    indirect forecast.

    incremental forecast.

 

Question 5

TransWave International is a small company that has developed a system that uses the Internet and patented electronic sensors as an early-warning device for pipeline leaks. With recent growth in the natural gas industry, the timing is right for this company's success, but it must use __________ advertising so oil companies will know of its product's existence.

Multiple Choice

    reminder

    competitive

    pioneering

    institutional

    objective

 

Question 6

Among business products, copiers would be best considered which type of support product?

Multiple Choice

 

    installations

    accessory equipment

    supplies

    industrial services

    raw materials

 

Question 7

Bentley Motors makes one of the world's most prestigious automobile brands, targeting the ultra-luxury segment. Which type of market coverage does Bentley most likely use?

Multiple Choice

 

    intensive distribution

    extensive distribution

    selective distribution

    exclusive distribution

    private label distribution

 

Question 8

The owner of a small restaurant that sells takeout fried chicken and biscuits each month pays $2,500 in rent, $500 in utilities, $750 interest on his loan, insurance premium of $200, and $250 on advertising on local buses. A bucket of chicken is priced at $9.50. Unit variable costs for the bucket of chicken are $5.50. How many buckets of chicken does the restaurant need to sell to break even each month?

Multiple Choice

 

    442 buckets

    764 buckets

    1,050 buckets

    3,150 buckets

    4,200 buckets

 

Question 9

If a marketing manager queries his marketing databases to determine the effect of three different levels of price for a new product, he is using

Multiple Choice

 

    action analysis.

    an environmental scan.

    a problem search.

    situational analysis.

    sensitivity analysis.

 

Question 10

Mrs. Renfro's, Inc., sells 25 different relishes in 45 states. Mrs. Renfro's chipotle corn salsa is so popular that the company cannot make enough to keep its resellers stocked. Its price of $4.50 for a jar seems just right to consumers who savor its hot and spicy taste. The popularity of hot and spicy food is an example of a __________ that Mrs. Renfro's has taken advantage of to make its product a success.

Multiple Choice

 

    barter factor

    demand factor

    supply factor

    consumer index

    macroeconomic environmental factor

 

Question 11

If you know the contents and price of a McDonald's Extra Value Meal, it may serve as __________ to you when you visit other fast-food restaurants and consider the purchase of a meal option there.

Multiple Choice

 

    a marginal analysis

    a profit equation

    a reference value

    a break-even analysis

    price elasticity of demand

 

Question 12

While querying the company's databases, marketing researchers for a convenience store chain discovered that when consumers bought a sandwich, many also purchased toothpaste. Researchers used __________ to uncover the statistical link between the two product categories.

Multiple Choice

 

    linear trend extrapolation

    heuristic modeling

    data mining

    descriptive research

    business intelligence

 

Question 13

Forever Quilting makes quilting kits priced at $120. The costs of the materials that go into each kit total $45. It costs $5 in labor to assemble a kit. The company has monthly expenses of $1,000 for rent and insurance, $200 for heat and electricity, $500 for advertising, and $4,500 for the monthly salary of its owner. Forever Quilting's unit variable cost for its kits is

Multiple Choice

 

    $5.

    $45.

    $50.

    $120.

    $170.

 

Question 14

An important social trend is the continued concern for health and well-being in the United States. This is most likely evidenced by

Multiple Choice

 

    the increased sales of Cigar Aficionado magazine.

    the introduction of Lay's Kettle Cooked potato chips, which have 40 percent less fat than regular potato chips.

    the opening of more Starbucks coffee boutiques in supermarkets.

    the upsizing of menu items at fast-food restaurants.

    the introduction of tablet devices such as the iPad.

 

Question 15

Suppose you are the owner of a picture frame store and you wish to calculate how many pictures you must sell to cover your fixed and variable costs at a given price. Demand for pictures is strong, so the average price customers are willing to pay for each picture frame is $120. Also, suppose your fixed costs (FC) total $32,000 (real estate taxes, interest on a bank loan, etc.) and unit variable cost (UVC) for a picture frame is $40 (labor, glass, frame, and matting). What is the quantity of picture frames you will need to sell to break even?

Multiple Choice

    200 picture frames

    400 picture frames

    800 picture frames

    1,600 picture frames

    2,000 picture frames

 

Question 16

Recognized for excellence by Advertising Age, Alma creates advertising to reach diverse segments by searching "for that intangible fiber that touches the lives of consumers creating relevant and unique business-building communication ideas." Alma has created Hispanic campaigns for McDonald's, Sprint, and Clorox as a part of their programs incorporating

Multiple Choice

 

    psychographic differences.

    population inputs.

    multicultural marketing.

    a value consciousness.

    macroeconomics.

 

Question 17

When the Office of National Drug Control Policy ran an ad with the headline, "Marijuana harmless? Didn't see the merging truck," it was using which type of ad appeal?

Multiple Choice

 

    humor

    fear

    sex

    nostalgic

    guilt

 

Question 18

Which of the following quotes from a new-product adopter would signal the need for a firm to counteract a psychological barrier?

Multiple Choice

 

    "I feel self-conscious wearing this."

    "What if I can't make the monthly payments?"

    "I don't want to try this if it means I have to swallow it with milk."

    "Big deal, the only difference is the shape of the package."

    "Sure I'll try it; why not!"

 

Question 19

Prudential, a financial planning firm, offers retirement plans and wealth management advice. These products are most likely targeted toward which generational cohort?

Multiple Choice

 

    Generation X

    baby busters

    Generation Y

    the greatest generation

    baby boomers

 

Question 20

An ad for Citrucel fiber supplement claimed that in a blind taste test, consumers preferred the taste of Citrucel to Metamucil 2 to 1. This ad is an example of __________ advertising.

Multiple Choice

    reinforcement

    comparative

    persuasive

    informative

    reminder

 

Question 21

If a bank is known for delivering customer value through its focus on taking great care of customers, it is most likely focusing on providing its customers with the best

Multiple Choice

    assortment.

    products/services.

    price.

    customer service.

    availability.

 

Question 22

George and Alice Renfro decided to start a family business in 1990 to produce chowchow, a Southern regional food. To determine how they would price the chowchow, the Renfros had to examine (1) the demand for the product (e.g., would people eat store-bought?); (2) the costs of the jars for and bottling of the chowchow; and (3) the cost to distribute the product to area grocery stores. The Renfros are doing which step of the price-setting process?

Multiple Choice

 

    identifying pricing constraints

    estimating break-even points and revenue points

    setting the list price

    selecting an approximate price level

    determining cost, volume, and profit relationships

 

Question 23

magine that Eveready has developed solar rechargeable batteries that cost only slightly more to produce than the rechargeable batteries currently available. These solar batteries can be recharged by sunlight up to five times, after which they are to be discarded. Unfortunately, the production process cannot be patented, so competitors could enter the market within a year. Which of the following is the best description of the product life cycle of this product?

Multiple Choice

 

    rapid growth followed by rapid decline

    long, level beginning, and rapid ascent

    moderately slow introduction, followed by modest growth, gradually leveling off

    high introductory sales followed by rapid decline

    high initial sales followed by slow decline

 

Question 24

Samsung sells a variety of TVs, from simple and small ones to large smart TVs with Internet connectivity and 3-D technology. Customers prefer different features, so Samsung uses which type of segmentation variable based on their viewing preferences?

Multiple Choice

 

    demographic segmentation

    psychographic segmentation

    behavioral segmentation

    geographic segmentation

    socioeconomic segmentation

 

Question 25

Cessna is considered the volume leader in the executive jet market. It has been described as "almost totally vertically integrated." This quote means that Cessna

Multiple Choice

 

    does not fall under the jurisdiction of any federal regulatory agency.

    owns several of the entities that would make up the traditional marketing channel.

    has eliminated economies of scale.

    has achieved a high level of social responsibility.

    uses outsourcing for all component parts and materials.

 

Question 26

The Lemon Tree is a high-fashion boutique selling top-of-the-line women's clothing and accessories. The keys to its success include knowing customers' changing tastes and providing something different than other retailers. In addition, because of the high value of the merchandise, The Lemon Tree's management is investing in the use of computerized inventory controls and sales order processing. The least important environmental force to The Lemon Tree at this time is likely to be

Multiple Choice

 

    economic.

    competitive.

    technological.

    social.

    regulatory.

 

Question 27

Lands' End will custom-fit a Marinac jacket and make it with additional features such as thumb loops, underarm ventilation slits, and a key clip when you order from LandsEnd.com. This is an example of

Multiple Choice

 

    family branding.

    mass customization.

    "Tiffany/Walmart" marketing.

    market melding.

    specialty customization.

 

 

Question 28

A testimonial ad for a First Alert carbon monoxide (CO) detector features parents who are discussing the dangers of carbon monoxide poisoning and how purchasing and using the advertised product can avert disaster. Such advertisements use

Multiple Choice

 

    compassionate appeals.

    guilt appeals.

    family appeals.

    fear appeals.

    coercive appeals.

 

Question 29

Oil prices have an impact on transportation costs for many types of products. Should oil prices change, the price consumers pay for products is often adjusted accordingly. Changing oil prices would be an example of a(n) __________ force.

Multiple Choice

 

    social

    economic

    technological

    competitive

    regulatory

 

Question 30

The Vermont Teddy Bear Co. sells handmade teddy bears designed to be given as gifts for almost every occasion imaginable. The Love Bandit Bear is designed for people to give on Valentine's Day. The unique identification number that the Vermont Teddy Bear Co. uses to distinguish this teddy bear from the others in order to track it in the warehouse is called a(n)

Multiple Choice

    inventory ID code.

    QR code.

    NAICS stock code.

    order quantity code.

    stock keeping unit