Question 1

Investment banking services include which of the following?

Accepted Answer

A)  advising when a security should be cross-listed 
B)  preparation of stock prospectuses 
C)  help to determine the price of the issue 
D)  all of the above 
A)  advising when a security should be cross-listed 
B)  preparation of stock prospectuses 
C)  help to determine the price of the issue 
D)  all of the above

Question 2

The Eurocurrency market continues to thrive because it is a large international money market relatively free of governmental regulation and interference.

Accepted Answer

A) True 
 B)False

Question 3

What are the two schools of thought regarding the worldwide trend toward increased financial disclosure by publicly traded firms.Explain which school of thought you hold to and why.

Accepted Answer

The student must give his/her own opinio

Question 4

Which of the following high profile euroequity issue was NOT also a privatization?

Accepted Answer

A)  British Telecommunications 
B)  Gucci 
C)  YPF Sociedad Anónima 
D)  Telefonos de Mexico 
A)  British Telecommunications 
B)  Gucci 
C)  YPF Sociedad Anónima 
D)  Telefonos de Mexico

Question 5

Financial theory has at last provided us with a single optimal capital structure for domestic firms.

Accepted Answer

A) True 
 B)False

Question 6

Level II ADRs must meet:

Accepted Answer

A)  U.S. GAAP standards. 
B)  home country accounting standards. 
C)  both U.S. GAAP and home country standards. 
D)  none of the above 
A)  U.S. GAAP standards. 
B)  home country accounting standards. 
C)  both U.S. GAAP and home country standards. 
D)  none of the above

Question 7

The domestic theory of optimal capital structure does not need to be modified for MNEs.

Accepted Answer

A) True 
 B)False

Question 8

A ________ is a bond underwritten by a syndicate from a single country,sold within in that country,denominated in that country's currency,but the issuer is from outside that country.

Accepted Answer

A)  foreign bond 
B)  Eurobond 
C)  domestic bond 
D)  none of the above 
A)  foreign bond 
B)  Eurobond 
C)  domestic bond 
D)  none of the above

Question 9

Eurobonds are usually issued in registered form.

Accepted Answer

A) True 
 B)False

Question 10

Moody's rates international bonds at the request of the issuer with the stipulation that Moody's will publish the ratings even if the ratings are unfavorable.

Accepted Answer

A) True 
 B)False

Question 11

The combined impact of a new equity issue undertaken simultaneously with a cross-listing has a more favorable impact on stock price than cross-listing alone.

Accepted Answer

A) True 
 B)False

Question 12

For the most part,U.S.SEC disclosure requirements are ________ other,non-U.S.equity market rules.

Accepted Answer

A)  more stringent than 
B)  less stringent than 
C)  equally stringent to 
D)  none of the above 
A)  more stringent than 
B)  less stringent than 
C)  equally stringent to 
D)  none of the above

Question 13

The number of foreign firms traded on the London exchange is ________ than the number traded on the NYSE,and the costs of listing and disclosure in London are ________ those for the NYSE.

Accepted Answer

A)  less than; less than 
B)  less than; greater than 
C)  greater than; less than 
D)  greater than; greater than 
A)  less than; less than 
B)  less than; greater than 
C)  greater than; less than 
D)  greater than; greater than

Question 14

ADRs are a popular investment tool for many U.S.investors.In recent years several alternatives for investing in foreign equity securities have become available for U.S.investors,yet ADRs remain popular.Define what an ADR is and provide at least three examples of the advantages they may hold over alternative foreign investment vehicles for U.S.investors.

Accepted Answer

Depositary receipts are negotiable certi

Question 15

Level III ADR commitment applies to:

Accepted Answer

A)  firms that want to list existing shares on the NYSE. 
B)  banks issuing foreign mutual funds. 
C)  ADR issues of under $25,000. 
D)  the sale of a new equity issued in the United States. 
A)  firms that want to list existing shares on the NYSE. 
B)  banks issuing foreign mutual funds. 
C)  ADR issues of under $25,000. 
D)  the sale of a new equity issued in the United States.

Question 16

Private equity funds appear to have a longer time horizon than traditional venture capital funds.

Accepted Answer

A) True 
 B)False

Question 17

________ are negotiable certificates issued by a bank to represent the underlying shares of stock,which are held in trust at a foreign custodian bank.

Accepted Answer

A)  Negotiable CDs 
B)  International mutual funds 
C)  Depositary receipts 
D)  Eurodeposits 
A)  Negotiable CDs 
B)  International mutual funds 
C)  Depositary receipts 
D)  Eurodeposits

Question 18

Most firms raise their initial capital in foreign markets.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following were NOT identified by the authors as a variable that needs to be modified in the domestic theory of optimal financial structures to accommodate the case of the multinational enterprise.

Accepted Answer

A)  Financial Distress 
B)  Availability of capital 
C)  Diversification of cash flows 
D)  Foreign exchange risk 
A)  Financial Distress 
B)  Availability of capital 
C)  Diversification of cash flows 
D)  Foreign exchange risk

Question 20

The stock exchange with the greatest value of shares traded is:

Accepted Answer

A)  NYSE. 
B)  Tokyo. 
C)  Nasdaq. 
D)  London. 
A)  NYSE. 
B)  Tokyo. 
C)  Nasdaq. 
D)  London.

Investment banking services include which of the following?

The Eurocurrency market continues to thrive because it is a large international money market relatively free of governmental regulation and interference.

What are the two schools of thought regarding the worldwide trend toward increased financial disclosure by publicly traded firms.Explain which school of thought you hold to and why.

Which of the following high profile euroequity issue was NOT also a privatization?

Financial theory has at last provided us with a single optimal capital structure for domestic firms.

Level II ADRs must meet:

The domestic theory of optimal capital structure does not need to be modified for MNEs.

A ________ is a bond underwritten by a syndicate from a single country,sold within in that country,denominated in that country's currency,but the issuer is from outside that country.

Eurobonds are usually issued in registered form.

Moody's rates international bonds at the request of the issuer with the stipulation that Moody's will publish the ratings even if the ratings are unfavorable.

The combined impact of a new equity issue undertaken simultaneously with a cross-listing has a more favorable impact on stock price than cross-listing alone.

For the most part,U.S.SEC disclosure requirements are ________ other,non-U.S.equity market rules.

The number of foreign firms traded on the London exchange is than the number traded on the NYSE,and the costs of listing and disclosure in London are those for the NYSE.

Level III ADR commitment applies to:

Private equity funds appear to have a longer time horizon than traditional venture capital funds.

________ are negotiable certificates issued by a bank to represent the underlying shares of stock,which are held in trust at a foreign custodian bank.

Most firms raise their initial capital in foreign markets.

Which of the following were NOT identified by the authors as a variable that needs to be modified in the domestic theory of optimal financial structures to accommodate the case of the multinational enterprise.

The stock exchange with the greatest value of shares traded is:

Multinational Financial Management: Opportunities and Challenges

The International Monetary System

The Balance of Payments

Financial Goals and Corporate Governance

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

Multinational Tax Management

International Trade Finance

Foreign Direct Investment and Political Risk

Multinational Capital Budgeting and Cross-Border Acquisitions

Filters

Exam 14: Raising Equity and Debt Globally

Investment banking services include which of the following?

The Eurocurrency market continues to thrive because it is a large international money market relatively free of governmental regulation and interference.

What are the two schools of thought regarding the worldwide trend toward increased financial disclosure by publicly traded firms.Explain which school of thought you hold to and why.

Which of the following high profile euroequity issue was NOT also a privatization?

Financial theory has at last provided us with a single optimal capital structure for domestic firms.

Level II ADRs must meet:

The domestic theory of optimal capital structure does not need to be modified for MNEs.

A ________ is a bond underwritten by a syndicate from a single country,sold within in that country,denominated in that country's currency,but the issuer is from outside that country.

Eurobonds are usually issued in registered form.

Moody's rates international bonds at the request of the issuer with the stipulation that Moody's will publish the ratings even if the ratings are unfavorable.

The combined impact of a new equity issue undertaken simultaneously with a cross-listing has a more favorable impact on stock price than cross-listing alone.

For the most part,U.S.SEC disclosure requirements are ________ other,non-U.S.equity market rules.

The number of foreign firms traded on the London exchange is ________ than the number traded on the NYSE,and the costs of listing and disclosure in London are ________ those for the NYSE.

Level III ADR commitment applies to:

Private equity funds appear to have a longer time horizon than traditional venture capital funds.

________ are negotiable certificates issued by a bank to represent the underlying shares of stock,which are held in trust at a foreign custodian bank.

Most firms raise their initial capital in foreign markets.

Which of the following were NOT identified by the authors as a variable that needs to be modified in the domestic theory of optimal financial structures to accommodate the case of the multinational enterprise.

The stock exchange with the greatest value of shares traded is:

Multinational Financial Management: Opportunities and Challenges

The International Monetary System

The Balance of Payments

Financial Goals and Corporate Governance

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

Multinational Tax Management

International Trade Finance

Foreign Direct Investment and Political Risk

Multinational Capital Budgeting and Cross-Border Acquisitions

Filters

The number of foreign firms traded on the London exchange is than the number traded on the NYSE,and the costs of listing and disclosure in London are those for the NYSE.