Questions from General Finance

Q: Captins’ Cereal is considering introducing a variation of its current breakfast cereal

Captins’ Cereal is considering introducing a variation of its current breakfast cereal, Crunch Stuff. The new cereal will be similar to the old with the exception that it will contain sugarcoated mars...

Q: Describe the bondholder’s claim on the firm’s assets and income.

Describe the bondholder’s claim on the firm’s assets and income.

Q: The Hokie Corporation is considering two mutually exclusive projects. Both require

The Hokie Corporation is considering two mutually exclusive projects. Both require an initial outlay of $10,000 and will operate for 5 years. Project A will produce expected cash flows of $5,000 per y...

Q: Simpson Energy earned $3 million in net income last year and

Simpson Energy earned $3 million in net income last year and for the first time ever paid its common stockholders a cash dividend of $0.12 per share. The firm has 10 million shareholders. What was Sim...

Q: Identify each of the following sources of short-term credit in

Identify each of the following sources of short-term credit in terms of whether they are secured (include some type of collateral) or are unsecured: ◆ Line of credit ◆ Pledging of accounts receivable...

Q: An American business needs to pay (a) 10,

An American business needs to pay (a) 10,000 Canadian dollars, (b) 2 million yen, and (c) 50,000 Swiss francs to businesses abroad. What are the dollar payments to the respective countries?

Q: An American business pays $10,000, $15,

An American business pays $10,000, $15,000, and $20,000 to suppliers in, respectively, Japan, Switzerland, and Canada. How much, in local currencies, do the suppliers receive?

Q: Compute the Canadian dollar/yen and the yen/Swiss franc

Compute the Canadian dollar/yen and the yen/Swiss franc spot rates from the data in the preceding table.

Q: If one euro buys 1.32 U.S. dollars

If one euro buys 1.32 U.S. dollars, how many euros can you purchase for 3 U.S. dollars?

Q: Suppose the exchange rate between U.S. dollars and Japanese

Suppose the exchange rate between U.S. dollars and Japanese yen is $1 US = ¥79.1 JPY, and the exchange rate between the U.S. dollar and the British pound is $1 US = £0.64 GBP. What is the cross rate o...