FINA 4500 FINAL EXAM 2025
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Terms in this set (234)
CHAPTER 1
1.The managers STOCKHOLDERS
are the agents of
the firms, and
_________ are its
principals.
,2.Assume it is $ 65,198,347
January 20X0. The
following table
provides a
forecast of Zenith
Inc's (an US
company) cash
receipt in US
dollars, Euros and
Pesos dollars for
January 20X1 and
January 20X2.
Also provided
are the exchange
rate forecasts for
Euros and Pesos
during the same
time periods.
January 20X1
January 20X2
Receipt
Exchange Rate
Receipt
Exchange Rate
US Dollars
15,000,000 NA
,18,000,000 NA
Euros 13,000,000
$1.30 15,000,000
$1.10
Pesos 20,000,000
$0.15 30,000,000
$0.20
If Zenith's
required rate of
return is 10%,
estimate the
value of Zenith's
total cash receipt
using the
valuation model
for an MNC.
, 3.The chart below INCREASED
reports the dollar
price of euro
from 2006 to
2020. Based on
this chart, during
the 2006 - 2008
period, the net
cash flow of a US
firm which mostly
produced its
goods in the US
and sold them in
Europe would
have_______.
complete questions ( frequently
tested) and answers| already graded
A+
Save
Terms in this set (234)
CHAPTER 1
1.The managers STOCKHOLDERS
are the agents of
the firms, and
_________ are its
principals.
,2.Assume it is $ 65,198,347
January 20X0. The
following table
provides a
forecast of Zenith
Inc's (an US
company) cash
receipt in US
dollars, Euros and
Pesos dollars for
January 20X1 and
January 20X2.
Also provided
are the exchange
rate forecasts for
Euros and Pesos
during the same
time periods.
January 20X1
January 20X2
Receipt
Exchange Rate
Receipt
Exchange Rate
US Dollars
15,000,000 NA
,18,000,000 NA
Euros 13,000,000
$1.30 15,000,000
$1.10
Pesos 20,000,000
$0.15 30,000,000
$0.20
If Zenith's
required rate of
return is 10%,
estimate the
value of Zenith's
total cash receipt
using the
valuation model
for an MNC.
, 3.The chart below INCREASED
reports the dollar
price of euro
from 2006 to
2020. Based on
this chart, during
the 2006 - 2008
period, the net
cash flow of a US
firm which mostly
produced its
goods in the US
and sold them in
Europe would
have_______.