Nova Southeastren University Spring 2015 Finace Fin5080 Quiz 6

Question 1

1 out of 1 points

Correct

Currently, you own 10% of the outstanding stock of ABC Company. The company has decided to issue additional shares of stock and has given you the first option to purchase 10% of those additional shares. Which one of the following will you be participating in if you opt to purchase the shares you have been offered?

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Question 2

0 out of 1 points

Incorrect

The exchange rate is 1.0291 Swiss francs per U.S. dollar. How many U.S. dollars are needed to purchase 3,221 Swiss francs?

Enter your answer rounded off to two decimal points. Do not enter $ in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

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Question 3

1 out of 1 points

Correct

Suppose it takes 1.46 U.S. dollars today to purchase one British pound today. Currency forecasters predict that the U.S. dollar will depreciate by 18% against the pound over the next 30 days. What is the U.S. dollar/Euro exchange rate in 30 days?

Enter your answer rounded off to FOUR decimal points.

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Question 4

1 out of 1 points

Correct

Suppose one U.S. dollar can purchase 139 yen today. If the yen depreciates by 2% tomorrow, how many yen could one U.S. dollar buy tomorrow?

Enter your answer rounded off to two decimal points. For example, if your answer is 12.345 then enter as 12.35 in the answer box.

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Question 5

0 out of 1 points

Incorrect

In New York, you can exchange $1 for €0.8855 or £0.6781. Suppose that, in Berlin, £1 costs €1.2088. How much profit can you earn on $15,469 using triangle arbitrage?

Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

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Question 6

1 out of 1 points

Correct

You just returned from a trip to Venezuela and have 5,645 bolivares fuertes in your pocket. How many dollars will you receive when you exchange this money if the U.S. dollar equivalent of the bolivares fuertes is 0.1491?

Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

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Question 7

1 out of 1 points

Correct

Which one of the following is the name given to a registration of securities under SEC 415 which permits a firm to issue the securities over a two-year period?

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Question 8

1 out of 1 points

Correct

ABCUnderwriters retains the difference between its buying price and its offering price on new securities. What is this amount called?

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Question 9

1 out of 1 points

Correct

Suppose the exchange rate between U.S. dollars and Swiss francs is SF 1.2582 = $1.00, and the exchange rate between the U.S. dollar and the euro is $1.00 = 1.0539 euros. What is the cross-rate of Swiss francs to euros (SF/Euro)?

Enter your answer rounded off to FOUR decimal points.

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Question 10

1 out of 1 points

Correct

Which one of the following terms is defined as an underwriting for which the underwriters assume full responsibility for any unsold shares?

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Question 11

0 out of 1 points

Incorrect

You can exchange $1 for either C$1.1903 or ¥131.7. What is the cross rate between the Japanese yen and the Canadian dollar? That is, solve for ¥ per C$.

Enter your answer rounded off to two decimal points.

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Question 12

0 out of 1 points

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Your friend from Germany has decided to come and visit you in the United States. You estimate the cost of her trip at $7,126. What is the cost to her in euros if the U.S. dollar equivalent of the euro is 1.1021?

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Question 13

1 out of 1 points

Correct

Suppose it takes 1.18 U.S. dollars today to purchase one British pound today. Currency forecasters predict that the U.S. dollar will depreciate by 15% against the pound over the next 30 days. What is the Euro/US Dollar exchange rate in 30 days?That is, how many euros can 1 dollar buy in 30 days?

Enter your answer rounded off to FOUR decimal points.

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Question 14

1 out of 1 points

Correct

Venture capital is most appropriate to be the source of funding for which one of the following? Choose only one

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Question 15

0 out of 1 points

Incorrect

Suppose the exchange rate between U.S. dollars and Swiss francs is SF 1.2691 = $1.00, and the exchange rate between the U.S. dollar and the euro is $1.00 = 0.9076 euros. What is the cross-rate of euros to Swiss francs (Euro/SF)?

Enter your answer rounded off to FOUR decimal points.

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