《國(guó)際金融（原書(shū)第12版） 教學(xué)課件作者 大衛(wèi).艾特曼（David Eiteman）阿瑟.斯通西 chapter 16》由會(huì)員分享，可在線閱讀，更多相關(guān)《國(guó)際金融（原書(shū)第12版） 教學(xué)課件作者 大衛(wèi).艾特曼（David Eiteman）阿瑟.斯通西 chapter 16（12頁(yè)珍藏版）》請(qǐng)?jiān)谘b配圖網(wǎng)上搜索。

1、Multinational Business Finance, 12e (Eiteman, et al) Chapter 16 Sourcing Debt Globally 16.1 Optimal Financial Structure Multiple Choice 1) Which financial economists are most closely associated with the financial theory of optimal capital structure? A) Modigliani and Miller B) Fama,

2、 Fisher, Jensen, and Roll C) Black and Scholes D) Markowitz and Sharpe Answer: A Diff: 1 Topic: 16.1 Optimal Financial Structure Skill: Recognition 2) For most firms, the cost of capital decreases to a low point as the firm ________ debt financing. At some point beyond this optimal level

3、, the cost of capital increases as the amount of debt ________. A) decreases; increases. B) decreases; decreases. C) increases; increases. D) increases; decreases. Answer: C Diff: 2 Topic: 16.1 Optimal Financial Structure Skill: Conceptual 3) One of the most important factors in making

4、 debt less expensive than equity is A) the tax deductibility of depreciation. B) the tax deductibility of equity. C) the tax deductibility of dividends. D) the tax deductibility of interest. Answer: D Diff: 2 Topic: 16.1 Optimal Financial Structure Skill: Recognition 4) One of the most

5、 important factors in making debt less expensive than equity is A) the seniority of equity obligations to debt claims. B) the tax deductibility of dividends. C) the tax deductibility of equity. D) the seniority of debt obligations to equity claims. Answer: D Diff: 2 Topic: 16.1 Optimal Fina

6、ncial Structure Skill: Recognition 5) Which of the following is NOT a factor offsetting the tax advantage of debt as a source of financing? A) Increased agency costs. B) Increased probability of financial distress (bankruptcy) due to fixed interest payments. C) Alternative tax shields to those

7、 supplied by interest payments. D) All of the above offset the tax advantage of debt as a source of financing. Answer: D Diff: 2 Topic: 16.1 Optimal Financial Structure Skill: Recognition 6) Most financial theorists believe that the optimal capital structure is a ________ with a debt to t

8、otal value ratio somewhere around ________. A) point; 50% B) point; 25% C) range; 30%-60% D) range; 10%-40% Answer: C Diff: 2 Topic: 16.1 Optimal Financial Structure Skill: Recognition 7) Not all firms have the same optimal capital structure. Factors that might influence a firm's capit

9、al structure include A) the industry in which it operates. B) the volatility of its sales and operating income. C) the collateral value of its assets. D) all of the above Answer: D Diff: 2 Topic: 16.1 Optimal Financial Structure Skill: Recognition True/False 1) Financial theory has

10、at last provided us with a single optimal capital structure for domestic firms. Answer: FALSE Diff: 1 Topic: 16.1 Optimal Financial Structure Skill: Conceptual 2) Financial practice suggests that there is a range for an optimal capital structure for a firm within an industry rather than a

11、specific optimal ratio of debt to equity. Answer: TRUE Diff: 1 Topic: 16.1 Optimal Financial Structure Skill: Conceptual 16.2 Optimal Financial Structure and the MNE Multiple Choice 1) MNEs situated in countries with small illiquid and segmented markets are most like A) small domest

12、ic U.S. firms in that they must rely on internally generated funds and bank borrowing. B) large U.S. MNEs in that they are all MNEs and have worldwide markets and sources of financing. C) small domestic U.S. firms in that they have a strong niche market in the U.S. D) None of the above is true.

13、Answer: A Diff: 2 Topic: 16.2 Optimal Financial Structure and the MNE Skill: Conceptual 2) In theory, the MNE should support ________ debt ratios than a purely domestic firm because their cash flows are ________. A) lower; more stable due to international diversification B) lower; less st

14、able due to international diversification C) higher; more stable due to international diversification D) higher; less stable due to international diversification Answer: C Diff: 2 Topic: 16.2 Optimal Financial Structure and the MNE Skill: Conceptual 3) TropiKana Inc., a U.S firm, has jus

15、t borrowed $1,000,000 to make improvements to an Italian fruit plantation and processing plant. If the interest rate is 6.00% per year, how much interest will they pay in the first year? A) $6,000 B) $60,000 C) $600,000 D) €60,000 Answer: B Diff: 3 Topic: 16.2 Optimal Financial Structure an

16、d the MNE Skill: Analytical 4) TropiKana Inc., a U.S firm, has just borrowed euro 1,000,000 to make improvements to an Italian fruit plantation and processing plant. If the interest rate is 5.50% per year and the Euro depreciates against the dollar from $1.40/€ at the time the loan was made to

17、$1.35/€ at the end of the first year, how much interest will TropiKana pay at the end of the first year (rounded)? A) $55,000 B) €74,250 C) $74,250 D) $77,000 Answer: C Diff: 3 Topic: 16.2 Optimal Financial Structure and the MNE Skill: Analytical 5) TropiKana Inc., a U.S firm, has just b

18、orrowed euro 1,000,000 to make improvements to an Italian fruit plantation and processing plant. If the interest rate is 5.50% per year and the Euro appreciates against the dollar from $1.40/€ at the time the loan was made to $1.45/€ at the end of the first year, how much interest will TropiKana pay

19、 at the end of the first year (rounded)? A) $55,000 B) $79,750 C) $77,000 D) $37,931 Answer: B Diff: 3 Topic: 16.2 Optimal Financial Structure and the MNE Skill: Analytical 6) TropiKana Inc., a U.S firm, has just borrowed euro 1,000,000 to make improvements to an Italian fruit plantati

20、on and processing plant. If the interest rate is 5.50% per year and the Euro appreciates against the dollar from $1.40/€ at the time the loan was made to $1.45/€ at the end of the first year, how much interest and principle will TropiKana pay at the end of the first year if they repay the entire loa

21、n plus interest (rounded)? A) $1,529,750 B) €1,529,750 C) $1,055,000 D) $1,477,000 Answer: A Diff: 3 Topic: 16.2 Optimal Financial Structure and the MNE Skill: Analytical 7) TropiKana Inc., a U.S firm, has just borrowed euro 1,000,000 to make improvements to an Italian fruit plantation

22、 and processing plant. If the interest rate is 5.50% per year and the Euro depreciates against the dollar from $1.40/€ at the time the loan was made to $1.35/€ at the end of the first year, how much interest and principle will TropiKana pay at the end of the first year if they repay the entire loan

23、plus interest (rounded)? A) $1,477,000 B) $1,055,000 C) €1,424,250 D) $1,424,250 Answer: D Diff: 3 Topic: 16.2 Optimal Financial Structure and the MNE Skill: Analytical 8) TropiKana Inc., a U.S firm, has just borrowed euro 1,000,000 to make improvements to an Italian fruit plantation and

24、 processing plant. If the interest rate is 5.50% per year and the Euro appreciates against the dollar from $1.40/€ at the time the loan was made to $1.45/€ at the end of the first year, what is the before tax cost of capital if the firm repays the entire loan plus interest (rounded)? A) 1.73% B) 5

25、.50% C) 10.50% D) 9.27% Answer: D Diff: 3 Topic: 16.2 Optimal Financial Structure and the MNE Skill: Analytical True/False 1) The domestic theory of optimal capital structure does not need to be modified for MNEs. Answer: FALSE Diff: 1 Topic: 16.2 Optimal Financial Structure and

26、the MNE Skill: Recognition 2) Portfolio diversification of domestic firms reduces risk because cash flows are not perfectly correlated. The same reasoning is often argued for MNEs diversifying into international markets. Answer: TRUE Diff: 1 Topic: 16.2 Optimal Financial Structure and the

27、MNE Skill: Conceptual 3) A significant advantage of borrowing foreign currency-denominated bonds is that the borrower need not worry about relative changes in the value of the home currency. Answer: FALSE Diff: 1 Topic: 16.2 Optimal Financial Structure and the MNE Skill: Conceptual 4)

28、 For firms to raise capital in international markets, it is more important to adhere to capital structure ratios similar to those found in the United States and United Kingdom than to those in the firm's home country. Answer: TRUE Diff: 1 Topic: 16.2 Optimal Financial Structure and the MNE Ski

29、ll: Recognition 16.3 Financial Structure of Foreign Subsidiaries Multiple Choice 1) If we accept the MNE objective of minimizing the consolidated cost of capital then A) the subsidiary's cost of capital is relevant only to the extent that it affects this overall goal. B) the objective of

30、 minimizing the cost of capital for each individual subsidiary may not be appropriate. C) the value of the MNE as a whole should be maximized. D) all of the above Answer: D Diff: 2 Topic: 16.3 Financial Structure of Foreign Subsidiaries Skill: Conceptual 2) Of the following, which is NOT

31、 identified by the authors as a country-specific environmental variable key to determining debt ratios? A) Historical development. B) Taxation. C) Corporate governance. D) All of the above are key variables identified by the authors. Answer: D Diff: 2 Topic: 16.3 Financial Structure of Fore

32、ign Subsidiaries Skill: Recognition 3) Of the following, which is NOT identified by the authors as a country-specific environmental variable key to determining debt ratios? A) Agency costs. B) Government regulations. C) The existence of a viable corporate bond market. D) All of the above ar

33、e key variables identified by the authors. Answer: D Diff: 2 Topic: 16.3 Financial Structure of Foreign Subsidiaries Skill: Recognition 4) Of the following, which is NOT considered to be an advantage to MNEs of having a financial structure adhere to local debt norms? A) A localized financ

34、ial structure reduces criticism of foreign subsidiaries that have previously used a different capital structure. B) A localized financial structure helps management evaluate return on equity investment relative to local competitors in the same industry. C) MNE have a competitive advantage over the

35、 locals, thus by using the local capital structure, the MNE is even stronger. D) All of the above are noted as advantages to having a localized capital structure. Answer: C Diff: 2 Topic: 16.3 Financial Structure of Foreign Subsidiaries Skill: Recognition 5) Of the following, which is NOT c

36、onsidered to be a disadvantage to MNEs of having a financial structure adhere to local debt norms? A) Why adhere to local standards if, as an MNE, the firm has important competitive advantages relating to capital structure? B) Adhering to local standards may push the MNE consolidated financial rat

37、ios out of the optimal range. C) A localized financial structure makes it difficult for management to compare operating results with those of local competitors. D) All of the above are noted as disadvantages to having a localized capital structure. Answer: C Diff: 2 Topic: 16.3 Financial Stru

38、cture of Foreign Subsidiaries Skill: Recognition 6) The MNE in an effort to minimize the cost of external funds should choose ________ funds to minimize ________. A) internal; debt financing. B) internal; taxes and political risk. C) external; debt financing. D) external; taxes and politica

39、l risk. Answer: B Diff: 2 Topic: 16.3 Financial Structure of Foreign Subsidiaries Skill: Conceptual 7) Of the following, which is NOT an internal source of financing for the foreign subsidiary? A) Equity in the form of cash from the parent firm. B) Equity in the form of real goods from t

40、he parent. C) Debt in the form of loans from the same commercial bank used by the parent. D) All of the above are internal sources of financing for the foreign subsidiary. Answer: C Diff: 2 Topic: 16.3 Financial Structure of Foreign Subsidiaries Skill: Recognition True/False 1) Intern

41、al sources of funds for a foreign subsidiary of a MNE may come from the parent company but not from a sister subsidiary. Funding from sister subsidiaries are considered external funding. Answer: FALSE Diff: 1 Topic: 16.3 Financial Structure of Foreign Subsidiaries Skill: Conceptual Essay

42、 1) There is much debate about whether an MNE should consider individual country norms, known as localization, when attempting to optimize the consolidated capital structure and minimize the firm's cost of capital. Provide arguments for the advantages and disadvantages of localization of capital str

43、ucture for subsidiaries. Do you think MNEs should localize the capital structure of their subsidiaries? Why/why not? Answer: The authors lay out several advantages and disadvantages to localization. The main advantages include: · Localization deflects criticism of foreign subsidiaries that have t

44、oo high a debt ratio that they are not contributing risk capital to the host country, or too low debt ratios that make the subsidiary insensitive to local monetary policy. · Localization aids in comparisons of ROE and other financial ratios with local competitors. · Localization is a way for manag

45、ers to monitor decision-making, ROA, and other profitability ratios. · The main disadvantages include: · An MNE is supposed to have comparative advantage over the locals, and better access to international financial markets. Therefore, why should they alter an optimal capital structure just to "fi

46、t in"? · Capital structure optimization of the parts does not necessarily imply optimization of the whole. · The debt ratio of each subsidiary is really a reflection of the parent firm as a whole. · At this point, the students needs to decide which argument they think is stronger and explain thei

47、r reasoning. Diff: 3 Topic: 16.3 Financial Structure of Foreign Subsidiaries Skill: Analytical 16.4 International Debt Markets Multiple Choice 1) ________ are domestic currencies of one country on deposit in a second country. A) LIBORs B) Eurocurrencies C) Federal funds D) Discou

48、nt window deposits Answer: B Diff: 1 Topic: 16.4 International Debt Markets Skill: Recognition 2) Of the following, which was NOT cited by the authors as a valuable function provided by the Eurocurrency market? A) Eurocurrency deposits are an efficient and convenient money market device for

49、 holding excess corporate liquidity. B) Eurocurrency deposits are a tool used by the Federal Reserve to regulate the money supply of countries that peg their currency against the U.S. dollar. C) The Eurocurrency market is a major source of short-term bank loans to finance corporate working capital

50、 needs. D) All of the above were cited by the authors. Answer: B Diff: 2 Topic: 16.4 International Debt Markets Skill: Recognition 3) Eurobanks are A) banks where Eurocurrencies are deposited. B) major world banks that conduct a Eurocurrency business in addition to normal banking activi

51、ties. C) financial intermediaries that simultaneously bid for time deposits in and make loans in a currency other than that of the currency of where it is located. D) All of the above are descriptions of a Eurobank. Answer: D Diff: 2 Topic: 16.4 International Debt Markets Skill: Recognition

52、 4) Eurocredits are A) bank loans to MNEs and others denominated in a currency other than that of the country where the bank is located. B) typically variable rate and tied to the LIBOR. C) usually for maturities of six months or less. D) All of the above are true. Answer: D Diff: 2 Topic

53、: 16.4 International Debt Markets Skill: Conceptual 5) In general, which has the shorter maturity and is more appropriate for funding short-term inventory needs? A) Commercial paper. B) Euro-Medium-Term notes (EMTNs). C) The international bond market. D) all of the above Answer: A Diff:

54、 2 Topic: 16.4 International Debt Markets Skill: Recognition 6) Foreign bonds sold in the United States are nicknamed "Yankee bonds," foreign bonds sold in Japan are called "Samurai bonds." What are foreign bonds sold in the United Kingdom nicknamed? A) "Union Jacks" B) "Royalty" C) "Bulldog

55、s" D) "Churchill's" Answer: C Diff: 1 Topic: 16.4 International Debt Markets Skill: Recognition 7) A ________ is a bond underwritten by a syndicate from a single country, sold within in that country, denominated in that country's currency, but the issuer is from outside that country. A)

56、foreign bond B) Eurobond C) domestic bond D) none of the above Answer: A Diff: 2 Topic: 16.4 International Debt Markets Skill: Recognition True/False 1) Eurocurrencies are NOT the same as the euro developed for the common European currency. Answer: TRUE Diff: 1 Topic: 16.4 Inter

57、national Debt Markets Skill: Recognition 2) The Eurocurrency market continues to thrive because it is a large international money market relatively free of governmental regulation and interference. Answer: TRUE Diff: 1 Topic: 16.4 International Debt Markets Skill: Recognition 3) Moody

58、's rates international bonds at the request of the issuer with the stipulation that Moody's will publish the ratings even if the ratings are unfavorable. Answer: FALSE Diff: 2 Topic: 16.4 International Debt Markets Skill: Recognition Essay 1) The Euro-medium-term-note (EMTN) has filled a

59、 substantial niche market in global financing. What are the distinguishing characteristics of the EMTN and why is it such a popular form of financing for MNEs? Answer: EMTNs have maturity between the long-lived international bonds and the short-term Euro-commercial paper, thus they have an appeali

60、ng time horizon to many investors. EMTNs are like international bonds in that they pay periodic interest. The distinguishing features of an EMTN are: They are similar to a shelf registration in that the entire order for the securities does not have to be issued on the same day. Coupon payments are paid continuously, and the relatively small denominations allow for some flexibility in the market. Diff: 3 Topic: 16.4 International Debt Markets Skill: Conceptual