《國(guó)際金融（原書第12版） 教學(xué)課件作者 大衛(wèi).艾特曼（David Eiteman）阿瑟.斯通西 chapter 14》由會(huì)員分享，可在線閱讀，更多相關(guān)《國(guó)際金融（原書第12版） 教學(xué)課件作者 大衛(wèi).艾特曼（David Eiteman）阿瑟.斯通西 chapter 14（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 14 The Global Cost and Availability of Capital 14.1 Introduction Multiple Choice 1) If a firm lies within a country with ________ or ________ domestic capital markets, it can achieve lower global cost and greater availabilit

2、y of capital with a properly designed and implemented strategy to participate in international capital markets. A) liquid; segmented B) liquid; large C) illiquid; segmented D) large; illiquid Answer: C Diff: 2 Topic: 14.1 Introduction Skill: Recognition 2) Other things equal, a firm th

3、at must obtain its long-term debt and equity in a highly illiquid domestic securities market will probably have a ________. A) relatively low cost of capital B) relatively high cost of capital C) relatively average cost of capital D) cost of capital that we cannot estimate from this question An

4、swer: B Diff: 2 Topic: 14.1 Introduction Skill: Recognition 3) Relatively high costs of capital are more likely to occur in ________. A) highly illiquid domestic securities markets B) highly liquid domestic securities markets C) unsegmented domestic securities markets D) none of the abo

5、ve Answer: A Diff: 2 Topic: 14.1 Introduction Skill: Recognition 4) Reasons that firms may find themselves with relatively high costs of capital include: A) The firms reside in emerging countries with undeveloped capital markets. B) The firms are too small to easily gain access to their

6、own national securities market. C) The firms are family owned and they choose not to access public markets and lose control of the firm. D) all of the above Answer: D Diff: 2 Topic: 14.1 Introduction Skill: Recognition 5) Which of the following is NOT a contributing factor to the segmentat

7、ion of capital markets? A) Excessive regulatory control. B) Perceived political risk. C) Anticipated foreign exchange risk. D) All of the above are contributing factors. Answer: D Diff: 2 Topic: 14.1 Introduction Skill: Recognition 6) Which of the following is NOT a contributing factor

8、 to the segmentation of capital markets? A) Lack of transparency. B) Asymmetric availability of information. C) Insider trading. D) All of the above are contributing factors. Answer: D Diff: 2 Topic: 14.1 Introduction Skill: Recognition True/False 1) A national securities market is

9、segmented if the required rate of return on securities in that market differs from comparable securities traded in other, unsegmented markets. Answer: TRUE Diff: 1 Topic: 14.1 Introduction Skill: Recognition 14.2 Weighted Average Cost of Capital Multiple Choice 1) The weighted ave

10、rage cost of capital (WACC) is A) the required rate of return for all of a firm's capital investment projects. B) the required rate of return for a firm's average risk projects. C) not applicable for use by MNE. D) equal to 13%. Answer: B Diff: 2 Topic: 14.2 Weighted Average Cost of Capital

11、 Skill: Recognition 2) The capital asset pricing model (CAPM) is an approach A) to determine the price of equity capital. B) used by marketers to determine the price of saleable product. C) can be applied only to domestic markets. D) none of the above Answer: A Diff: 2 Topic: 14.2 Weig

12、hted Average Cost of Capital Skill: Conceptual 3) Which of the following is NOT a key variable in the equation for the capital asset pricing model? A) The risk-free rate of interest. B) The expected rate of return on the market portfolio. C) The marginal tax rate. D) All are important compone

13、nts of the CAPM. Answer: C Diff: 2 Topic: 14.2 Weighted Average Cost of Capital Skill: Recognition 4) ________ risk is a function of the variability of expected returns of the firm's stock relative to the market index and the measure of correlation between the expected returns of the firm

14、and the market. A) Systematic B) Unsystematic C) Total D) Diversifiable Answer: A Diff: 2 Topic: 14.2 Weighted Average Cost of Capital Skill: Recognition 5) Systematic risk A) is the standard deviation of a security's return. B) is measured with beta. C) is measured with standard de

15、viation. D) none of the above Answer: B Diff: 2 Topic: 14.2 Weighted Average Cost of Capital Skill: Recognition 6) Which of the following is generally unnecessary in measuring the cost of debt? A) a forecast of future interest rates B) the proportions of the various classes of debt a fi

16、rm proposes to use C) the corporate income tax rate D) All of the above are necessary for measuring the cost of debt. Answer: D Diff: 2 Topic: 14.2 Weighted Average Cost of Capital Skill: Recognition 7) The after-tax cost of debt is found by A) dividing the before-tax cost of debt by (1

17、 - the corporate tax rate). B) subtracting (1 - the corporate tax rate) from the before-tax cost of debt. C) multiplying the before-tax cost of debt by (1 - the corporate tax rate). D) subtracting the corporate tax rate from the before-tax cost of debt. Answer: C Diff: 2 Topic: 14.2 Weighted

18、 Average Cost of Capital Skill: Conceptual 8) A firm whose equity has a beta of 1.0 A) has greater systematic risk than the market portfolio. B) stands little chance of surviving in the international financial market place. C) has less systematic risk than the market portfolio. D) None of the

19、 above is true. Answer: D Diff: 2 Topic: 14.2 Weighted Average Cost of Capital Skill: Conceptual 9) The difference between the expected (or required) return for the market portfolio and the risk-free rate of return is referred to as ________. A) beta B) the geometric mean C) the market

20、risk premium D) the arithmetic mean Answer: C Diff: 2 Topic: 14.2 Weighted Average Cost of Capital Skill: Recognition 10) In general the geometric mean will be ________ the arithmetic mean for a series of returns. A) less than B) greater than C) equal to D) greater than or equal to A

21、nswer: A Diff: 1 Topic: 14.2 Weighted Average Cost of Capital Skill: Recognition 11) The beginning share price for a security over a three-year period was $50. Subsequent year-end prices were $62, $58 and $64. The arithmetic average annual rate of return and the geometric average annual rat

22、e of return for this stock was A) 9.30% and 8.58% respectively. B) 9.30% and 7.89% respectively. C) 9.30% and 7.03% respectively. D) 9.30% and 6.37% respectively. Answer: A Diff: 3 Topic: 14.2 Weighted Average Cost of Capital Skill: Analytical 12) If a company fails to accurately predi

23、ct it's cost of equity, then A) the firm's wacc will also be inaccurate. B) the firm may not be using the proper interest rate to estimate NPV. C) the firm my incorrectly accept or reject projects based on decisions made using the cost of capital computed with an incorrect cost of equity. D) All

24、 of the above are true. Answer: D Diff: 2 Topic: 14.2 Weighted Average Cost of Capital Skill: Conceptual True/False 1) Other things equal, an increase in the firm's tax rate will increase the WACC for a firm that has both debt and equity financing. Answer: FALSE Diff: 2 Topic: 14.2 W

25、eighted Average Cost of Capital Skill: Conceptual 2) If a firm's expected returns are more volatile than the expected return for the market portfolio, it will have a beta less than 1.0. Answer: FALSE Diff: 2 Topic: 14.2 Weighted Average Cost of Capital Skill: Conceptual 3) The WACC is

26、 usually used as the risk-adjusted required rate of return for new projects that are of the same average risk as the firm's existing projects. Answer: TRUE Diff: 2 Topic: 14.2 Weighted Average Cost of Capital Skill: Conceptual 4) One of the elegant beauties of international equity markets

27、is that over the last 100 or so years, the average market risk premium is almost identical across major industrial countries. Answer: FALSE Diff: 2 Topic: 14.2 Weighted Average Cost of Capital Skill: Recognition Essay 1) What are the components of the weighted average cost of capital (

28、WACC) and how do they differ for an MNE compared to a purely domestic firm? Answer: The WACC considers the proportion or weight of assets financed with debt and the proportion financed with equity. It also looks at the costs of debt and equity financing and the firm's corporate tax rate. The diffi

29、culty of such a computation is compounded for an MNE because there are several additional sources of debt financing with different required rates of return and tax rates for an MNE than for a domestic firm. Also, equity may be sourced in several different markets and subject to several different reg

30、ulations of several different countries. Adding regulatory oversight, multiple sourcing locations, and differing investor expectations may significantly complicate the process of determining an MNE's cost of capital. Diff: 3 Topic: 14.2 Weighted Average Cost of Capital Skill: Analytical 14.3

31、 The Demand for Foreign Securities: The Role of International Portfolio Investors Multiple Choice 1) The primary goal of both domestic and international portfolio managers is A) to maximize return for a given level of risk, or minimize risk for a given level of return. B) minimize the number

32、 of unique securities held in their portfolio. C) maximize their WACC. D) all of the above Answer: A Diff: 1 Topic: 14.3 The Demand for Foreign Securities: The Role of International Portfolio Investors Skill: Conceptual 2) Which of the following is NOT a portfolio diversification techniq

33、ue used by portfolio managers? A) Diversify by type of security. B) Diversify by the size of capitalization of the securities held. C) Diversify by country. D) All of the above are diversification techniques. Answer: D Diff: 2 Topic: 14.3 The Demand for Foreign Securities: The Role of Inter

34、national Portfolio Investors Skill: Recognition 3) If all capital markets are fully integrated, securities of comparable expected return and risk should have the same required rate of return in each national market after adjusting for ________. A) time of day and language requirements B) poli

35、tical risk and time lags C) foreign exchange risk and political risk D) foreign exchange risk and the spot rate Answer: C Diff: 2 Topic: 14.3 The Demand for Foreign Securities: The Role of International Portfolio Investors Skill: Recognition 4) Capital market segmentation is a financial

36、market imperfection caused mainly by ________. A) government constraints B) institutional practices C) investor perceptions D) all of the above Answer: D Diff: 2 Topic: 14.3 The Demand for Foreign Securities: The Role of International Portfolio Investors Skill: Recognition 5) Capital mar

37、ket imperfections leading to financial market segmentation include A) asymmetric information between domestic and foreign-based investors. B) high securities transaction costs. C) foreign exchange risks. D) all of the above Answer: D Diff: 2 Topic: 14.3 The Demand for Foreign Securities: Th

38、e Role of International Portfolio Investors Skill: Recognition 6) Capital market imperfections leading to financial market segmentation include A) political risks. B) corporate governance differences. C) regulatory barriers. D) all of the above Answer: D Diff: 2 Topic: 14.3 The Demand

39、for Foreign Securities: The Role of International Portfolio Investors Skill: Recognition 7) The authors refer to companies that have access to a ________ as MNEs, and firms without such access are identified as ________. A) global cost and availability of capital; domestic firms. B) large dom

40、estic capital market; geographically challenged. C) world financial markets; antiquated. D) none of the above Answer: A Diff: 2 Topic: 14.3 The Demand for Foreign Securities: The Role of International Portfolio Investors Skill: Recognition 8) The MNE can ________ its ________ by gaining

41、access to markets that are more liquid and/or less segmented than its own. A) increase; MCC B) decrease; MCC C) maintain; MRR D) none of the above Answer: B Diff: 2 Topic: 14.3 The Demand for Foreign Securities: The Role of International Portfolio Investors Skill: Recognition True/Fals

42、e 1) Internationally diversified portfolios often have a lower rate of return and almost always have a higher level of portfolio risk than their domestic counterparts. Answer: FALSE Diff: 2 Topic: 14.3 The Demand for Foreign Securities: The Role of International Portfolio Investors Skill:

43、Conceptual 2) Empirical tests of market efficiency fail to show that most major national markets are reasonably efficient. Answer: FALSE Diff: 1 Topic: 14.3 The Demand for Foreign Securities: The Role of International Portfolio Investors Skill: Recognition 3) A MNEs marginal cost of capit

44、al is constant for considerable ranges in its capital budget, but this statement cannot be made for most domestic firms. Answer: TRUE Diff: 1 Topic: 14.3 The Demand for Foreign Securities: The Role of International Portfolio Investors Skill: Conceptual 14.4 The Cost of Capital for MNEs C

45、ompared to Domestic Firms Multiple Choice 1) Theoretically, most MNEs should be in a position to support higher ________ than their domestic counterparts because their cash flows are diversified internationally. A) equity ratios B) debt ratios C) temperatures D) none of the above Answer:

46、 B Diff: 2 Topic: 14.4 The Cost of Capital for MNEs Compared to Domestic Firms Skill: Conceptual 2) According to your authors, diversifying cash flows internationally may help MNEs reduce the variability of cash flows because A) of a lack of competition among international firms. B) of an

47、 offset to cash flow variability caused by exchange rate variability. C) returns are not perfectly correlated between countries. D) none of the above Answer: C Diff: 2 Topic: 14.4 The Cost of Capital for MNEs Compared to Domestic Firms Skill: Recognition 3) Which of the following stateme

48、nts is NOT true regarding MNEs when compared to purely domestic firms? A) MNEs tend to rely more on short and intermediate term debt. B) MNEs have greater foreign exchange risk. C) MNEs have greater costs of asymmetric information. D) MNEs have higher agency costs. Answer: A Diff: 2 Topic:

49、14.4 The Cost of Capital for MNEs Compared to Domestic Firms Skill: Conceptual 4) Empirical research has found that systematic risk for MNEs is greater than that for their domestic counterparts. This could be due to A) the fact that the increase in the correlation of returns between the market a

50、nd the firm is less than the increase in the standard deviation of returns of the firm. B) the fact that the decrease in the correlation of returns between the market and the firm is greater than the increase in the standard deviation of returns of the firm. C) the reduction in the correlation of

51、returns between the firm and the market is less than the increase in the variability of returns caused by factors such as asymmetric information, foreign exchange risk, and the like. D) none of the above. Systematic risk is less for MNEs than for their domestic counterparts. Answer: C Diff: 2 T

52、opic: 14.4 The Cost of Capital for MNEs Compared to Domestic Firms Skill: Conceptual 5) The optimal capital budget A) occurs where the marginal cost of capital equals the marginal rate of return of the opportunity set of projects. B) is typically larger for purely domestic firms than for MNE

53、s. C) is an illusion found only in international finance textbooks. D) none of the above Answer: A Diff: 1 Topic: 14.4 The Cost of Capital for MNEs Compared to Domestic Firms Skill: Recognition 6) Empirical studies indicate that MNEs have higher costs of capital than purely domestic firm

54、s. This could be due to higher levels of ________. A) political risk B) exchange rate risk C) agency costs D) all of the above Answer: D Diff: 2 Topic: 14.4 The Cost of Capital for MNEs Compared to Domestic Firms Skill: Recognition True/False 1) Because of the international diversif

55、ication of cash flows, the risk of bankruptcy for MNEs is significantly lower than that for purely domestic firms. Answer: FALSE Diff: 1 Topic: 14.4 The Cost of Capital for MNEs Compared to Domestic Firms Skill: Recognition 2) The opportunity set of projects is typically smaller for MNEs t

56、han for purely domestic firms because international markets are typically specialized niches. Answer: FALSE Diff: 1 Topic: 14.4 The Cost of Capital for MNEs Compared to Domestic Firms Skill: Recognition Essay 1) What do theory and empirical evidence say about capital structure and the co

57、st of capital for MNEs versus their domestic counterparts? Answer: In theory, MNEs should be able to support greater amounts of debt due to reduced variability of cash flows brought about by diversification across countries. And, because of this reduced risk borne by MNEs, they should also have a

58、lower cost of capital. However, empirical research finds that domestic firms tend to use greater amounts of short and intermediate debt than do MNEs and that the cost of capital is greater for MNEs due to increased agency costs, political risk, exchange rate risk, and asymmetric information. Diff:

59、3 Topic: 14.4 The Cost of Capital for MNEs Compared to Domestic Firms Skill: Conceptual 14.5 Solving a Riddle: Is the Weighted Average Cost of Capital for MNEs Really Higher Than Their Domestic Counterparts? Multiple Choice 1) Empirical studies indicate that WACC for an MNE is higher

60、 than for their domestic competitors. Reasons cited for this increased cost include all of the following EXCEPT: A) agency costs. B) foreign exchange risk. C) political risk. D) All of the above are cited as reasons for an MNE's increased WACC. Answer: D Diff: 2 Topic: 14.5 Solving a Riddl

61、e: Is the Weighted Average Cost of Capital for MNEs Really Higher Than Their Domestic Counterparts? Skill: Recognition True/False 1) Empirical studies indicate that MNEs have a lower debt/capital ratio than domestic counterparts, indicating that MNEs have a lower cost of capital. Answer: FALSE Diff: 2 Topic: 14.5 Solving a Riddle: Is the Weighted Average Cost of Capital for MNEs Really Higher Than Their Domestic Counterparts? Skill: Recognition