A U.S. firm sells merchandise today to a British company for £150,000
The current exchange rate is $1.55/£ , the account is payable in three months, and the firm chooses to avoid any hedging techniques designed to reduce or eliminate the risk of changes in the exchange rate. The U.S. firm is at risk today of a loss if:
A) the exchange rate changes to $1.52/£.
B) the exchange rate changes to $1.58/£.
C) the exchange rate doesn't change.
D) all of the above
Answer: D
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If a firm gives all international assignments to people without disabilities, assuming they will therefore not require special accommodations, which type of workplace discrimination has occurred?
A. Adverse impact B. Harassment C. Reverse discrimination D. Disparate treatment E. Inequality
Which of the following is NOT normally regarded as being a good reason to establish an ESOP?
A. To enable the firm to borrow at a below-market interest rate. B. To make it easier to grant stock options to employees. C. To help prevent a hostile takeover. D. To help retain valued employees. E. To increase worker productivity.
Artificial variables are added to constraints and represent unused resources
Indicate whether this statement is true or false.
If a firm adheres strictly to the residual dividend policy, and if its optimal capital budget requires the use of all earnings for a given year (along with new debt according to the optimal debt/assets ratio), then the firm should pay
A. the same dividend as it paid the prior year. B. no dividends to common stockholders. C. dividends only out of funds raised by the sale of new common stock. D. dividends only out of funds raised by borrowing money (i.e., issuing debt). E. dividends only out of funds raised by selling off fixed assets.