1. Suppose the exchange rate between U.S. dollars and Swiss francs is SF 0.9704 = $1.00, and the exchange rate between the U.S. dollar and the euro is $1.00 = 0.9938 euros. What is the cross-rate of Swiss francs to euros (SF/Euro)? Enter your answer rounded off to FOUR decimal points.
2. The exchange rate is 1.0305 Swiss francs per U.S. dollar. How many U.S. dollars are needed to purchase 1 Swiss franc? 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.
3. Suppose it takes 1.34 U.S. dollars today to purchase one British pound today. Currency forecasters predict that the U.S. dollar will depreciate by 19% against the pound over the next 30 days. What is the Pound/US Dollar exchange rate in 30 days? That is, how many pounds can 1 dollar buy in 30 days? Enter your answer rounded off to FOUR decimal points.
4. The exchange rate is 1.0046 Swiss francs per U.S. dollar. How many U.S. dollars are needed to purchase 8,931 Swiss francs?
5. You just returned from a trip to Venezuela and have 9,354 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 0.1487?
6. Suppose one U.S. dollar can purchase 137 yen today. If the yen depreciates by 7% tomorrow, how many yen could one U.S. dollar buy tomorrow?
7. 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.
8. ABC Company sells 4,643 chairs a year at an average price per chair of $147. The carrying cost per unit is $16.67. The company orders 500 chairs at a time and has a fixed order cost of $47 per order. The chairs are sold out before they are restocked. What is the economic order quantity?
9. Your friend from Germany has decided to come and visit you in the United States. You estimate the cost of her trip at $2,790. What is the cost to her in euros if the U.S. dollar equivalent of the euro is 1.2944?
10. ABC Company sells 4,595 chairs a year at an average price per chair of $144. The carrying cost per unit is $39.13. The company orders 486 chairs at a time and has a fixed order cost of $71.1 per order. The chairs are sold out before they are restocked. What are the total shortage costs?
11. Suppose the exchange rate between U.S. dollars and Swiss francs is SF 1.0907 = $1.00, and the exchange rate between the U.S. dollar and the euro is $1.00 = 1.1695 euros. What is the cross-rate of euros to Swiss francs (Euro/SF)? Enter your answer rounded off to FOUR decimal points.
12. Suppose it takes 1.36 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/Pound exchange rate in 30 days? Enter your answer rounded off to FOUR decimal points.
13. ABC Company sells 4,357 chairs a year at an average price per chair of $174. The carrying cost per unit is $38.73. The company orders 571 chairs at a time and has a fixed order cost of $113.7 per order. The chairs are sold out before they are restocked. What are the total carrying costs?
14. In New York, you can exchange $1 for €0.8504 or £0.6646. Suppose that, in Berlin, £1 costs €1.1766. How much profit can you earn on $35,734 using triangle arbitrage?
15. ABC Company sells 3,307 chairs a year at an average price per chair of $192. The carrying cost per unit is $16.18. The company orders 419 chairs at a time and has a fixed order cost of $140 per order. The chairs are sold out before they are restocked. How many orders will company place if it follows the economic order quantity model?
16. 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?
Rights offer
Red herring offer
Private placement
IPO
General cash offer
17. Which one of the following terms is defined as an underwriting for which the underwriters assume full responsibility for any unsold shares?
Firm commitment underwriting
Initial public offering
Rights offer
Best efforts underwriting
Private placement
18. 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?
Delayed registration
Seasoned registration
Negotiated registration
Extended registration
Shelf registration
19. ABC Underwriters retains the difference between its buying price and its offering price on new securities. What is this amount called?
Markup
Rights price
Offer
Spread
Commission
20. Venture capital is most appropriate to be the source of funding for which one of the following? Choose only one
Bankruptcy reorganization
Global expansion for an established, profitable firm
Seasonal production
New, high-risk venture
Daily operations for an established, profitable firm