Exam 14: Global Financial Management

Whether a firm is small or large and how this size provides an estimate of the cost of equity refers to the ______.

A group of banks that collectively make a loan to a firm is called a hedge.

_______ risks are the ways in which long-term exchange rate movements impact firms.

Using currency derivatives to reduce potential transaction, translation, and economic risks of currency movements that could lead to losses for a firm or investor is called_____.

Moody's and Standard and Poor's provide bond ratings which are important in assuring the credit quality to foreign investors.

_____ is a measurement of the general market risk of a stock in the Capital Asset Pricing Model (CAPM).

The required rate of return demanded by stock and bond investors and used in net present value capital budgeting analyses as the discount rate is called the _____.

A simple agreement wherein the exporter sends an invoice with the goods and the exporter pays upon the receipt is called a(n)_____.

_____ offers payment protection to both exporters and importers, as the importer's bank writes a guarantee of payment.

______ are bonds that are issued by foreign firms in another country in the home currency of that country.

_______ accounting statements are the income statements and balance sheets of multinational corporations and of all subsidiaries abroad due to home tax requirements.

The buying of a currency in a currency futures contract and profiting on an increase in the value of the currency over time is called taking a _______.

______ is an asset pricing model that includes both domestic and global market factors to estimate the cost of equity or required rate of return on stocks.

A small commitment fee needed to purchase a futures contract is called a _____.

______ is a U.S. government export finance agency that supports U.S. firms competing against exports of other countries that are government supported.

A stock value measured with the coefficient obtained by regressing the stock's return on a currency's return over time is known as the _____.

The short- term effects of currency movements on the consolidated accounting statements of a firm represents a ______ risk.

The weighted average of different interest rates paid on long-term borrowings is called the _____.

Of the following, which is NOT true about the IMF and World Bank?

When a bank sells a LC into the financial marketplace as a money market instrument, this is called ______.