FIN 4604 EXAM REVISION QUESTIONS. ALL EXAM REVISION QUESTIONS AND CORRECT ANSWERS (ALREADY GRADED A+) (2024 UPDATE)
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Course
FINC - Finance
Institution
FINC - Finance
FIN 4604 EXAM REVISION QUESTIONS. ALL EXAM REVISION QUESTIONS AND
CORRECT ANSWERS (ALREADY GRADED A+) (2024 UPDATE).
Which of the following is NOT a characteristic of international long-term capital project
financing?
A) The projects are large in scale.
B) The projects are long in life.
C) ...
FIN 4604 EXAM REVISION QUESTIONS. ALL EXAM REVISION QUESTIONS AND
CORRECT ANSWERS (ALREADY GRADED A+) (2024 UPDATE)
Which of the following is NOT a characteristic of international long-term capital project
financing?
A) The projects are large in scale.
B) The projects are long in life.
C) The projects are generally high in risk.
D) The projects may be all of the above. - ANSWER- D) The projects may be all of the above
The predictability of the project's revenue stream is essential in securing project financing. Which
of the following is NOT a typical contract provisions that are intended to assure adequate cash
flow?
A) quantity and quality of the project's output
B) a pricing formula
C) circumstances that permit changes in the contract
D) fronting loan - ANSWER- D) fronting loan
T or F
Project financing is the arrangement of financing for very large individual long-term capital
projects. - ANSWER- TRUE
T or F
Debt is usually a large component of project financing. - ANSWER- TRUE
,T or F
The level of debt places an enormous burden on cash flow for debt service and requires a number
of additional levels of risk reduction. - ANSWER- TRUE
T or F
In project finance, retained earnings and the reinvestment of earnings are the most important
decisions to guarantee the long term growth of the project's value. - ANSWER- FALSE
Which of the following is NOT a reason given for international mergers and acquisitions?
A) gaining access to strategic proprietary assets
B) gaining market power and dominance
C) diversifying and spreading their risks wider
D) All of the above are commonly cited reasons for international mergers and acquisitions. -
ANSWER- D) All of the above are commonly cited reasons for international mergers and
acquisitions
Which of the following changes does NOT create business opportunities for select firms to both
enhance and defend their competitive positions in global markets?
A) Changes in technology
B) Changes in regulation
C) Changes in capital markets
D) Changes in management - ANSWER- D) Changes in management
,The process of acquiring an enterprise anywhere in the world has three common elements
EXCEPT:
A) identification and valuation of the target
B) execution of the acquisition offer and purchase—the tender
C) management of the post-acquisition transition
D) All of the above are common elements in acquiring an enterprise anywhere in the world. -
ANSWER- D) All of the above are common elements in acquiring an enterprise anywhere in
the world
Which of the following is NOT an advantage of cross-border acquisitions over greenfield
Which of the following is NOT a typical pitfall of cross-border acquisitions?
A) paying too much
B) excessive financing costs
C) melding corporate cultures
D) all of the above are pitfalls - ANSWER- D) all of the above are pitfalls
, T or F
Currency risk is a concern for any international merger and acquisition activity. For instance, the
initial bid, if denominated in a foreign currency, creates a contingent foreign currency exposure
for the bidder. - ANSWER- TRUE
T or F
Currency risk is a concern for any international merger and acquisition activity. For instance, once
the bidder has successfully won the acquisition, the exposure evolves from a transaction exposure
to a contingent exposure. - ANSWER- FALSE
T or F
The drivers of international merger and acquisitions are only MACRO in scope. - ANSWER-
FALSE
T or F
As opposed to greenfield investment, a cross-border acquisition is typically quicker. - ANSWER-
TRUE
The exporter-importer relationship to a corporation of a foreign importer that has not previously
conducted business with the firm would be an:
A) unaffiliated known
B) affiliated party
C) unaffiliated unknown
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