Final Exam
Attempt 1
Written: Apr 2, 2023 6:48 AM - Apr 2, 2023 8:48 AM
Submission View
Your quiz has been submitted successfully.
Question 1 point
A common price for Nasonex in Europe is 220 Euro. The Dollar/Euro Exchange Rate is 1.2. According to
PPP what should be the price of Nasonex in Dollars in the United States?
Round the answer to two decimals.
Answer:
264
Hide question 1 feedback
The actual price of Nasonex in the USA is over $300/bottle.
{Ne}*{S}
Question 2 point
The euro is currently trading at 1.02 euros per dollar. The interest rate on the US Treasury Bill is 1.05%
and the risk free interest rate in Europe is 2.69%. What is the arbitrage free future exchange rate
between the euro and the U.S. dollar for one year in the future in euros per dollar?
Round the answer to two decimals.
Answer:
1.05
, Hide question 2 feedback
{Se} *( 1 + {re})/(1 + {rd})
Question 3 point
Consider the following cash flows: Co = -100, C01 = 80, C02 = 22.30, C03 = 56.37. What is the payback
period?
Round the answer to two decimals.
Answer:
1.40 Incorrect Response (1.90)
Hide question 3 feedback
1+(20/{x})
Question 4 points
Consider a company with a free cash flow (FCF) of $927,171 the next year, a weighted average cost of
capital (WACC) of 12.89% and an expected growth rate of 3.20%. What is the company's value using the
constant growth stock model?
Round the answer to two decimals.
Answer:
9,568,328.20 Incorrect Response (9,568,328.17)
Hide question 4 feedback
{FC}/({WA} -{g})
Question 5 point
Attempt 1
Written: Apr 2, 2023 6:48 AM - Apr 2, 2023 8:48 AM
Submission View
Your quiz has been submitted successfully.
Question 1 point
A common price for Nasonex in Europe is 220 Euro. The Dollar/Euro Exchange Rate is 1.2. According to
PPP what should be the price of Nasonex in Dollars in the United States?
Round the answer to two decimals.
Answer:
264
Hide question 1 feedback
The actual price of Nasonex in the USA is over $300/bottle.
{Ne}*{S}
Question 2 point
The euro is currently trading at 1.02 euros per dollar. The interest rate on the US Treasury Bill is 1.05%
and the risk free interest rate in Europe is 2.69%. What is the arbitrage free future exchange rate
between the euro and the U.S. dollar for one year in the future in euros per dollar?
Round the answer to two decimals.
Answer:
1.05
, Hide question 2 feedback
{Se} *( 1 + {re})/(1 + {rd})
Question 3 point
Consider the following cash flows: Co = -100, C01 = 80, C02 = 22.30, C03 = 56.37. What is the payback
period?
Round the answer to two decimals.
Answer:
1.40 Incorrect Response (1.90)
Hide question 3 feedback
1+(20/{x})
Question 4 points
Consider a company with a free cash flow (FCF) of $927,171 the next year, a weighted average cost of
capital (WACC) of 12.89% and an expected growth rate of 3.20%. What is the company's value using the
constant growth stock model?
Round the answer to two decimals.
Answer:
9,568,328.20 Incorrect Response (9,568,328.17)
Hide question 4 feedback
{FC}/({WA} -{g})
Question 5 point
