[单选题]12. Owners of capital in developing countries generally
A.A.opposes an inflow of foreign direct investment from abroad
B.B.favor an inflow of foreign direct investment from abroad
C.C.are indifferent to foreign direct investment from abroad
D.D.we cannot say without additional information

[单选题]12. Owners of capital in developing countries generally
A.A.opposes an inflow of foreign direct investment from abroad
B.B.favor an inflow of foreign direct investment from abroad
C.C.are indifferent to foreign direct investment from abroad
D.D.we cannot say without additional information

[单选题]11.Labor in developing countries generally
A.A.opposes an inflow of foreign direct investment from abroad
B.B.favor an inflow of foreign direct investment from abroad
C.C.is indifferent to foreign direct investment from abroad
D.D.we cannot say without additional information

[填空题]capital7

[单选题]Net working capital:
A. can be ignored in project analysis because any expenditure is normally recouped at the end of the project.
B. requirements, such as an increase in accounts receivable, create a cash inflow at the beginning of a project.
C. is rarely affected when a new product is introduced.
D. can create either an initial cash inflow or outflow.
E. is the only expenditure where at least a partial recovery can be made at the end of a project.
Difficulty: 1 Easy
Topic: Cash flows
Learning Objective: 10-01 Determine the relevant cash flows for a proposed project.

[单选题]Working capital management decisions include determining:
A. the minimum level of cash to be kept in a checking account.
B. the best method of producing a product.
C. the number of employees needed to work during a particular shift.
D. when to replace obsolete equipment.
E. if a competitor should be acquired.
Difficulty: 1 Easy
Topic: Financial management decisions
Learning Objective: 01-01 Define the basic types of financial management decisions and the role of the financial manager.

[单选题]Capital structure decisions include determining:
A. which one of two projects to accept.
B. how to allocate investment funds to multiple projects.
C. the amount of funds needed to finance customer purchases of a new product.
D. how much debt should be assumed to fund a project.
E. how much inventory will be needed to support a project.
Difficulty: 1 Easy

[单选题]3.Capital inflows:
A.A.refer to an increase in foreign assets in the nation
B.B.refer to a reduction in the nation's assets abroad
C.C.lead to a payment from foreigners
D.D.all of the above

[单选题]8.Developing nations often experience wildly fluctuating export prices for their prim ary products because of:
A.A.inelastic and stable demand and supply
B.B.elastic and unstable demand and supply
C.C.inelastic and unstable demand and supply
D.D.elastic and stable demand and supply

[单选题]When developing a financial plan for a corporation you should consider which of the following?
I. How much net working capital will be needed?
II. Will additional fixed assets be required?
III. Will dividends be paid to shareholders?
IV. How much new debt must be obtained?
A. I and IV only
B. II and III only
C. I, III, and IV only
D. II, III, and IV only
E. I, II, III, and IV
Difficulty: 1 Easy
Topic: Financial planning basics
Learning Objective: 04-01 Apply the percentage of sales method.

[单选题]The capital structure weights used in computing a company's weighted average cost of capital:
A. are based on the book values of debt and equity.
B. are based on the market values of the outstanding securities.
C. depend upon the financing obtained to fund each specific project.
D. remain constant over time unless new securities are issued or outstanding securities are redeemed.
E. are restricted to debt and common stock.
Difficulty: 1 Easy
Topic: Weighted average cost of capital
Learning Objective: 14-03 Determine a firm's overall cost of capital and how to use it to value a company.

[单选题]Changes in the net working capital requirements:
A. can affect the cash flows of a project every year of the project's life.
B. only affect the initial cash flows of a project.
C. only affect the initial and final cash flows of a project.
D. are generally excluded from project analysis due to their irrelevance to the total project.
E. are excluded from project analysis as long as they are recovered when the project ends.
Difficulty: 1 Easy
Topic: Cash flows
Learning Objective: 10-01 Determine the relevant cash flows for a proposed project.

[单选题]Net working capital is defined as:
A. total liabilities minus shareholders' equity.
B. current liabilities minus shareholders' equity.
C. fixed assets minus long-term liabilities.
D. total assets minus total liabilities.
E. current assets minus current liabilities.
Difficulty: 1 Easy
Topic: Net working capital
Learning Objective: 02-01 Describe the difference between accounting value (or "book" value. and market value.

[单选题]Black River Tours has a capital structure of 60 percent common stock, 5 percent preferred stock, and 35 percent debt. The dividend payout ratio is 30 percent, the company's beta is 1.21, and the tax rate is 21 percent. Given this, which one of the following statements is correct?
A. The aftertax cost of debt will be greater than the current yield-to-maturity on the company's outstanding bonds.
B. The company's cost of preferred is most likely less than the company's actual cost of debt.
C. The cost of equity is unaffected by a change in the company's tax rate.
D. The cost of equity can only be estimated using the capital asset pricing model.
E. The weighted average cost of capital will remain constant as long as the company's capital structure remains constant.
Difficulty: 1 Easy
Topic: Weighted average cost of capital
Learning Objective: 14-03 Determine a firm's overall cost of capital and how to use it to value a company.

[单选题]An example of a capital budgeting decision is deciding:
A. how many shares of stock to issue.
B. whether or not to purchase a new machine for the production line.
C. how to refinance a debt issue that is maturing.
D. how much inventory to keep on hand.
E. how much money should be kept in the checking account.

[单选题]The capital asset pricing model approach to equity valuation:
A. is dependent upon the unsystematic risk of a security.
B. assumes the reward-to-risk ratio increases as beta increases.
C. can only be applied to dividend-paying firms.
D. assumes a firm's future risks will be higher than its current risks.
E. assumes the reward-to-risk ratio is constant.
Difficulty: 1 Easy
Topic: Cost of equity
Learning Objective: 14-01 Determine a firm's cost of equity capital.

[单选题] Which of the following countries has advised or banned the traditional kiss greeting? (D)
A. France.
B. Switzerland.
C. Italy.
D. All of the above.