Logistics Corp. is an American company that produces nigh-tech electronics. it has decided to move some Of its production facilities to Japan In an attempt to circumvent certain governmental...

Chapter 17 multinational financial management
1)
a) To seek production efficiency.
b) Diversify
c) True
2.
a) ¥124.97 per euro
b) €0.00802 per yen
c) True
d) A direct quotation
3)
a) Forward
b) Floating
c) Depreciates
d) Depreciation or appreciation
e) Managed
f) Non-convertibles
4.
Discount
$4.85 million
Today
5)
a) 9.848%
b) Interest rate in all countries with the same political risk should be the same.
6)
a) $1,686.83
b) The demand for the television would increase in the United States.
7)
a) The statement is valid, because as the currency of the lending currency appreciates, it becomes cheaper to repay the initial loan and increase savings.
b) offset
c) depreciate
8)
a) Yankee bond
b) LIBOR
c) Portfolio investment
d) Eurodollar
9)
a) $997,183
b) Obtain insurance against economic losses from expropriation.
10)
a) It would decrease by -$2,375
b) The current ratio would increase.
Chapter 16 Working capital management
1)
a) i) 134.82 ii) 82.21
b) 3900
c) 6700
d) false
2)
a) Conservative policy
b) The firm has excess capital to invest in cash or marketable securities.
3)
a) Aggressive approach
b) Aggressive approach
c) Short-term debt
4)
a) 52.14 days
b) 23.91 days
c) 48.55 days
d) 27.50 days
e) Shorter
f) Yes
5)
a) i) -$1218 million
ii) -$1350 million
i) 33 million
ii) -$1388 million
b)True
6)
a) Transactions
b) Precautionary
7)
a) Collection floats
b) i)$240,000 ii) $100,000 iii) $140,000
c) greater than
8)
a) Term of credit indicates
b) $123,750
c) $125,000
d) 30 days
9)
a)$1880.13
b) 9.22%
c) 1.03%
10)
a) $3666.67
b) $48,125
11)
a) False
b) i) Trade credit ii) Secured loan
Chapter 15 capital structure decisions
iii) Maximized the weighted average cost of capital (WACC)
a) The pre-tax cost of debt increases as the firm’s risk of bankruptcy increases.
b) An increase in the bankruptcy...