Question 1

The study of how shareholders can motivate management to accept the prescriptions of the shareholder wealth maximization model is called:

Accepted Answer

A)  market efficiency. 
B)  the SWM model. 
C)  agency theory. 
D)  the SCM model. 
A)  market efficiency. 
B)  the SWM model. 
C)  agency theory. 
D)  the SCM model.

Question 2

The relationship among stakeholders used to determine and control the strategic direction and performance of an organization is termed:

Accepted Answer

A)  corporate governance. 
B)  Anglo-American activism. 
C)  capital structure. 
D)  working capital management. 
A)  corporate governance. 
B)  Anglo-American activism. 
C)  capital structure. 
D)  working capital management.

Question 3

Having Anglo-Americans as members of the board of directors of a non-Anglo-American firm signals poor corporate governance in the firm.

Accepted Answer

A) True 
 B)False

Question 4

If share price rises from $12 to $15 per share,and pays a dividend of $1 per share,what was the rate of return to shareholders?

Accepted Answer

A)  26.67% 
B)  -13.33% 
C)  33.33% 
D)  16.67% 
A)  26.67% 
B)  -13.33% 
C)  33.33% 
D)  16.67%

Question 5

Regarding comparative corporate governance regimes: Bank-based regimes characterized by government influence in bank lending and a lack of transparency is often found in countries such as Korea and Germany.

Accepted Answer

A) True 
 B)False

Question 6

PolyProduction Inc.has two classes of common stock.Class A has 5 million shares with 10 votes per share.Class B has 5 million shares with 1 vote per share.If the dividends per share are equal for both class A and B stock,then Class A shareholders have ________ of the votes and ________ of the dividends.

Accepted Answer

A)  90.91%; 90.91% 
B)  90.91%; 50.00% 
C)  50.00%; 50.00% 
D)  83.33%; 33.33% 
A)  90.91%; 90.91% 
B)  90.91%; 50.00% 
C)  50.00%; 50.00% 
D)  83.33%; 33.33%

Question 7

"Maximize corporate wealth":

Accepted Answer

A)  is the primary objective of the non-Anglo-American model of management. 
B)  as a management objective treats shareholders on a par with other corporate stakeholders such as creditors, labor, and local community. 
C)  has a broader definition than just financial wealth. 
D)  all of the above 
A)  is the primary objective of the non-Anglo-American model of management. 
B)  as a management objective treats shareholders on a par with other corporate stakeholders such as creditors, labor, and local community. 
C)  has a broader definition than just financial wealth. 
D)  all of the above

Question 8

Which of the following operational goals for the international firm may be incompatible with the others?

Accepted Answer

A)  maintaining a strong local currency 
B)  maximization of after-tax income 
C)  minimization of the firm's effective global tax burden 
D)  Each of these goals may be incompatible with one or more of the others. 
A)  maintaining a strong local currency 
B)  maximization of after-tax income 
C)  minimization of the firm's effective global tax burden 
D)  Each of these goals may be incompatible with one or more of the others.

Question 9

A recent study shows that privately held firms use less financial leverage and enjoy lower costs of debt than publicly traded firms.

Accepted Answer

A) True 
 B)False

Question 10

The goal of all international corporations is to maximize shareholder wealth.

Accepted Answer

A) True 
 B)False

The study of how shareholders can motivate management to accept the prescriptions of the shareholder wealth maximization model is called:

The relationship among stakeholders used to determine and control the strategic direction and performance of an organization is termed:

Having Anglo-Americans as members of the board of directors of a non-Anglo-American firm signals poor corporate governance in the firm.

If share price rises from $12 to $15 per share,and pays a dividend of $1 per share,what was the rate of return to shareholders?

Regarding comparative corporate governance regimes: Bank-based regimes characterized by government influence in bank lending and a lack of transparency is often found in countries such as Korea and Germany.

PolyProduction Inc.has two classes of common stock.Class A has 5 million shares with 10 votes per share.Class B has 5 million shares with 1 vote per share.If the dividends per share are equal for both class A and B stock,then Class A shareholders have of the votes and of the dividends.

"Maximize corporate wealth":

Which of the following operational goals for the international firm may be incompatible with the others?

A recent study shows that privately held firms use less financial leverage and enjoy lower costs of debt than publicly traded firms.

The goal of all international corporations is to maximize shareholder wealth.

Multinational Financial Management: Opportunities and Challenges

The International Monetary System

The Balance of Payments

The Foreign Exchange Market

International Parity Conditions

Foreign Currency Derivatives: Futures and Options

Interest Risk and Swaps

Foreign Exchange Rate Determination

Transaction Exposure

Translation Exposure

Operating Exposure

The Global Cost and Availability of Capital

Raising Equity and Debt Globally

Multinational Tax Management

International Trade Finance

Foreign Direct Investment and Political Risk

Multinational Capital Budgeting and Cross-Border Acquisitions

Filters

Exam 4: Financial Goals and Corporate Governance

The study of how shareholders can motivate management to accept the prescriptions of the shareholder wealth maximization model is called:

The relationship among stakeholders used to determine and control the strategic direction and performance of an organization is termed:

Having Anglo-Americans as members of the board of directors of a non-Anglo-American firm signals poor corporate governance in the firm.

If share price rises from $12 to $15 per share,and pays a dividend of $1 per share,what was the rate of return to shareholders?

Regarding comparative corporate governance regimes: Bank-based regimes characterized by government influence in bank lending and a lack of transparency is often found in countries such as Korea and Germany.

"Maximize corporate wealth":

Which of the following operational goals for the international firm may be incompatible with the others?

A recent study shows that privately held firms use less financial leverage and enjoy lower costs of debt than publicly traded firms.

The goal of all international corporations is to maximize shareholder wealth.

Multinational Financial Management: Opportunities and Challenges

The International Monetary System

The Balance of Payments

The Foreign Exchange Market

International Parity Conditions

Foreign Currency Derivatives: Futures and Options

Interest Risk and Swaps

Foreign Exchange Rate Determination

Transaction Exposure

Translation Exposure

Operating Exposure

The Global Cost and Availability of Capital

Raising Equity and Debt Globally

Multinational Tax Management

International Trade Finance

Foreign Direct Investment and Political Risk

Multinational Capital Budgeting and Cross-Border Acquisitions

Filters