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ARM 401 Segment C Assignment 9 Exam Questions with Correct Answers.
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ARM 401 Segment C Assignment 9 Exam Questions with Correct Answers.
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ARM c401 cSegment cC cAssignment c9 cExam cQuestionscwith cCorrect cAnswers
A cconstruction ccompany cbased cin cthe cU.S. chas cbuilding ccontracts cin cfive cdifferent cforeign
cnations. cThe cconstruction ccompany cagreed cto caccept cpayment cfor cits cwork cin ceach ccountry's
ccurrency. cThe crisk cof closs cof cvalue cwhen cthese cforeign cpayments care cconverted cto cU.S. cdollars
cis ccalled c- cCorrect c cAnswer c- cExchange-rate crisk
Jones, cInc. cbuys cgrain cfrom clocal cfarmers cand cre-sells cthe cgrain cto ca cnumber cof ccustomers.
cJones, cInc. chas cbeen capproached cby cSnack cCracker cCompany. cSnack cCracker cwould clike cto
cpurchase cwheat cand ccorn cfrom cJones, cInc. cto cuse cin cthe ccrackers cit cproduces. cSnack cCracker
cwould clike cto cpay cfor cthe cgrain cwithin c30 cdays cof cthe cdate cthe cgrain cis cdelivered. cAs cSnack
cCracker cis ca cnew ccustomer, cJones, cInc. casked cto creview cits cfinancial cstatements. cWhich cbalance
csheet cratio cwould cbest cassist cJones, cInc. cin cdetermining cif cSnack cCracker ccan cpay cfor cthe cgrain
cwithin c30 cdays cof cthe csale? c- cCorrect c cAnswer c- cCurrent cratio
One cof cthe cmain cfunctions cof ca crisk-based ccapital callocation cmodel cis c- cCorrect c cAnswer c- cTo
cprospectively cdetermine cthe camount cof crisk cassociated cwith ca cbusiness cactivity.
Economic ccapital cattempts cto cquantify cthe cvarious crisks cfaced cby can corganization. cOne csuch crisk
cis closs cof cvalue cbecause cof cnot cproperly cmatching casset cand cliability ccash cflows. cThis crisk cis
ccalled c- cCorrect c cAnswer c- cLiquidity crisk.
The cfair cvalue cof cassets cminus cthe cfair cvalue cof cliabilities, cwith cboth cof cthese cmeasures cadjusted
cfor crisk, cis cknown cas c- cCorrect c cAnswer c- cMarket cvalue csurplus.
The cbasic caccounting cequation con cwhich cthe cbalance csheet cis cstructured cis c- cCorrect c cAnswer c-
cAssets c= cLiabilities c+ cNet cWorth
Economic ccapital cis cbased con ca cconcept cthat cmeasures cthe cexpected closs cexceeding ca cthreshold
clevel cduring ca cgiven ctime cperiod. cThis cconcept cis ccalled c- cCorrect c cAnswer c- cValue cat crisk.
Alpha cPharma cCompany cis cconsidering cadding ca cnew cproduct. cIt cis cestimated cthat cthe ceconomic
ccapital cneeded cfor cthe cproduct cwill cbe c$50 cmillion. cThe cproduct cis cprojected cto cgenerate
crevenues cof c$45 cmillion cand cexpenses cof c$38 cmillion. cManagers cassign can c"expected closs" cof c$2
cmillion cbased con cthe cpure crisk cassociated cwith cthis cnew cproduct. cThe crisk-free crate cis c2%.
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