Questions from Corporate Finance


Q: The Russian financial crisis of 1998 caused its currency to be dramatically

The Russian financial crisis of 1998 caused its currency to be dramatically devalued. What is the percentage change in value of a $100 million investment in Russia when the exchange rate changes from...

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Q: The spot rate between the U.S. dollar and the

The spot rate between the U.S. dollar and the New Zealand dollar is $1 = NZD1.1867. If the interest rate in the United States is 5 percent and in New Zealand is four percent, then what should be the 3...

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Q: The spot rate between the U.S. dollar and the

The spot rate between the U.S. dollar and the Taiwan dollar is $1 = TWD29.905. If the interest rate in the United States is five percent and in Taiwan is three percent, then what should be the 1-month...

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Q: The current spot rate between the U.S. dollar and

The current spot rate between the U.S. dollar and the Swedish krona is $1 = 6.5228 krona. If the inflation rate in the United States is four percent and in Sweden is 2 percent, then what is the exp...

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Q: The current spot rate between the U.S. dollar and

The current spot rate between the U.S. dollar and the Netherland Antilles guilder is $1 = 1.7915 guilder. If the inflation rate in the United States is three percent and in the Netherland Antilles is...

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Q: Peter’s TV Supplies is considering a merger with Jan’s Radio Supply Stores

Peter’s TV Supplies is considering a merger with Jan’s Radio Supply Stores. Peter’s total operating costs of producing services are $250,000 for a sales volume (SP) of $4.5 million. Jan’s total operat...

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Q: What are the risks of foreign direct investment into the United States

What are the risks of foreign direct investment into the United States? What does new FDI into the United States mean for firms already operating in that industry in the United States?

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Q: Classify each of the following as a horizontal merger, a vertical

Classify each of the following as a horizontal merger, a vertical merger, a market extension merger, a conglomerate merger, or a product extension merger.

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Q: Cindy’s Computer Corp. is considering a merger with Bobby’s Hard Drive

Cindy’s Computer Corp. is considering a merger with Bobby’s Hard Drive, Inc. Cindy’s total operating costs of producing services are $3.4 million for a sales volume (SC) of $16 million. Bobby’s total...

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Q: Consider a market that has three firms with the following market shares

Consider a market that has three firms with the following market shares: Firm A = 35% Firm B = 41% Firm C = 24% Suppose firm B wants to acquire firm C so that the post-acquisition market would exhibi...

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