56531873-Ch-19-Financing-International-Trade
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56531873-Ch-19-Financing-International-Trade

Course Number: FIN 571, Spring 2012

College/University: TAMU Commerce

Word Count: 2793

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Chapter 19 Financing International Trade Lecture Outline Payment Methods for International Trade Prepayment Letters of Credit Drafts Consignment Open Account Trade Finance Methods Accounts Receivable Financing Factoring Letters of Credit Bankers Acceptances Working Capital Financing Medium-Term Capital Goods Financing (Forfaiting) Countertrade Agencies that Motivate International Trade Export-Import Bank of the...

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Chapter 19 Financing International Trade Lecture Outline Payment Methods for International Trade Prepayment Letters of Credit Drafts Consignment Open Account Trade Finance Methods Accounts Receivable Financing Factoring Letters of Credit Bankers Acceptances Working Capital Financing Medium-Term Capital Goods Financing (Forfaiting) Countertrade Agencies that Motivate International Trade Export-Import Bank of the U.S. Private Export Funding Corporation (PEFCO) Overseas Private Investment Corporation (OPIC) 49 50 International Financial Management Chapter Theme This chapter first suggests why international trade can be difficult. Then, it explains the various ways in which banking institutions can facilitate international trade by resolving problems faced by the exporter and importer. Topics to Stimulate Class Discussion 1. Assume that you receive a call from an old friend who has set up a computer parts store. He says that he plans to begin exporting these parts soon. What potential complications should he that he plans to begin exporting these parts soon.

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TAMU Commerce - FIN - 571
Chapter 20Short-Term FinancingLecture OutlineSources of Short-Term FinancingInternal Financing by MNCsWhy MNCs Consider Foreign FinancingForeign Financing to Offset Foreign Currency InflowsForeign Financing to Reduce CostsDetermining the Effective
TAMU Commerce - FIN - 571
Chapter 21International Cash ManagementLecture OutlineCash Flow Analysis: Subsidiary PerspectiveSubsidiary ExpensesSubsidiary RevenueSubsidiary Dividend PaymentsSubsidiary Liquidity ManagementCentralized Cash ManagementTechniques to Optimize Cash
TAMU Commerce - FIN - 504
Chapter 4 - FINANCIAL PLANNING AND FORECASTINGMULTIPLE CHOICE1. In the percent-of-sales forecasting method, all of the following balance sheet and income statementitems are assumed to increase proportionately with sales EXCEPT:a. dividendsb. accounts
TAMU Commerce - FIN - 504
Chapter 5THE TIME VALUE OF MONEYMULTIPLE CHOICE1. The amount of simple interest is equal to the product of the principal times_ times_.a. (1 + rate per time period), the number of time periodsb. (1 + rate per time period), (the number of time periods
TAMU Commerce - FIN - 504
Vbhuiiy.Chapter 6ANALYSIS OF RISK AND RETURNMULTIPLE CHOICE 1081. The _ is a statistical measure of the mean or average value of the possible outcomes.a. probability distributionb. standard deviationc. expected valued. coefficient of variationANS:
TAMU Commerce - FIN - 504
Chapter 7FIXED INCOME SECURITIES: CHARACTERISTICS ANDVALUATION 118MULTIPLE CHOICE1. Which of the following types of debt securities protect investors against interest rate risk?a. floating rate bondsb. extendible notesc. original issue deep discount
TAMU Commerce - FIN - 504
Chapter 8COMMON STOCK: CHARACTERISTICS, VALUATION, ANDISSUANCEMULTIPLE CHOICE1. Which of the following is not a characteristic of common stock:a. has no maturity dateb. considered a permanent form of long-term financingc. has claims on assets prior
TAMU Commerce - FIN - 504
Chapter 9CAPITAL BUDGETING AND CASH FLOW ANALYSISMULTIPLE CHOICE1. The value of resources used in an investment project should be measured in terms of theira. acquisition costb. historical costc. opportunity costd. depreciated costANS: CPTS: 1OBJ
TAMU Commerce - FIN - 504
Chapter 10CAPITAL BUDGETING: DECISION CRITERIA AND REAL OP TION CONSIDERATIONSMULTIPLE CHOICE1. Multiple internal rates of return can occur when there is (are):a. large abandonment costs at the end of a project's lifeb. a major shutdown and rebuilding
TAMU Commerce - FIN - 504
Chapter 11CAPITAL BUDGETING AND RISKMULTIPLE CHOICE1. The discount rate used in calculating the certainty equivalent net present value is thea. risk-adjusted discount rateb. cost of capitalc. risk-free rated. cost of equity capitalANS: CPTS: 1OBJ
TAMU Commerce - FIN - 504
Chapter 12THE COST OF CAPITALMULTIPLE CHOICE1. The Institutional Brokers' Estimate Service (IBES) summarizes analysts' _.a. short-term earnings forecastsb. long-term earnings growth ratesc. bankruptcy forecastsd. short-term earnings forecasts and lo
TAMU Commerce - FIN - 504
Chapter 13CAPITAL STRUCTURE CONCEPTSMULTIPLE CHOICE1. In analyzing the value of the firm as a function of capital structure, the present value of the tax shieldbenefit is offset by the present value of the expected _, resulting in an interior optimal c
TAMU Commerce - FIN - 504
Chapter 14CAPITAL STRUCTURE MANAGEMENT IN PRACTICEMULTIPLE CHOICE1. Raw material and direct labor costs are examples ofa. fixed costsb. overhead costsc. variable costsd. capital costsANS: CPTS: 1OBJ: TYPE: FactLOC: Knowledge of capital budgeting
TAMU Commerce - FIN - 504
Chapter 15DIVIDEND POLICYMULTIPLE CHOICE1. The dividend clientele effect concept was originally developed bya. Myron Gordonb. Merton Miller and Franco Modiglianic. Milton Friedmand. Paul SamuelsonANS: BPTS: 1LOC: Understand stocks and bondsOBJ:
TAMU Commerce - FIN - 504
Chapter 16WORKING CAPITAL POLICY AND SHORT-TERM FINAN CINGMULTIPLE CHOICE1. The length of the operating cycle is equal to the length of thea. inventory conversion periodb. receivables conversion periodc. cash conversion periodd. a plus bANS: DPTS:
TAMU Commerce - FIN - 504
Chapter 17THE MANAGEMENT OF CASH AND MARKETABLE SECUR ITIESMULTIPLE CHOICE1. Which of the following methods is (are) used to transfer surplus funds from local (collection) bank ac counts to concentration (disbursement) bank accounts?a. wire transfersb
TAMU Commerce - FIN - 504
Chapter 18MANAGEMENT OF ACCOUNTS RECEIVABLE ANDINVENTORIESMULTIPLE CHOICE1. The credit policy variables that a firm can use to exercise control over its level of receivablesinvestment includea. credit standardsb. credit termsc. collection effortd.
TAMU Commerce - FIN - 504
Chapter 19LEASE AND INTERMEDIATE TERM FINANCINGMULTIPLE CHOICE1. In the net advantage to leasing calculation, all cash flows (except salvage value) are discounted at thefirm'sa. weighted (marginal) cost of capitalb. cost of internal equity capitalc.
TAMU Commerce - FIN - 504
Chapter 20FINANCING WITH DERIVATIVESMULTIPLE CHOICE1. _ are forms of options.a. Warrantsb. Convertible securitiesc. Leasesd. Warrants and convertible securitiesANS: DPTS: 1LOC: Understand derivative marketsOBJ: TYPE: FactTOP: IntroductionNAT:
TAMU Commerce - FIN - 504
Chapter 21RISK MANAGEMENTMULTIPLE CHOICE1. Which of the following statements about risk is/are correct?I. Risk is the possibility that the actual cash flows will be different that the expected cash flows.II. Risk management is utilized by companies in
TAMU Commerce - FIN - 504
Chapter 22INTERNATIONAL FINANCIAL MANAGEMENTMULTIPLE CHOICE1. Which of the following actions would not tend to increase the value of a country's currency?a. relatively low interest ratesb. government trade policies that limit importsc. relatively low
TAMU Commerce - FIN - 504
Chapter 23CORPORATE RESTRUCTURINGMULTIPLE CHOICE1. Forms of business combinations include:a. mergersb. consolidationsc. holding companies and consolidationsd. mergers, consolidations, and holding companiesANS: DPTS: 1OBJ: TYPE: FactLOC: Knowledg
FAU - ACCOUNTING - 4001
ch01Student: _1.Payment of a tax entitles the payer to a specific good or service from the government.True False2.A user fee entitles the payer to a specific good or service from the government.True False3.A tax is intended to deter or punish una
FAU - ACCOUNTING - 4001
ch02Student: _1.A tax meets the standard of sufficiency if it is easy for people to pay the tax.True False2.The federal government is not required to pay interest on the national debt.True False3.A static forecast of the revenue effect of a tax r
FAU - ACCOUNTING - 4001
ch03Student: _1.Net cash flow from a transaction equals the difference between cash received and cash disbursed in thetransaction.True False2.The present value of a dollar available in a future period increases as the discount rate increases.True
FAU - ACCOUNTING - 4001
ch04Student: _1.The goal of tax planning is to reduce tax costs or increase tax savings as much as possible.True False2.Tax avoidance is the reduction of a person's tax liability through illegal means.True False3.Tax evasion is a federal crime pu
FAU - ACCOUNTING - 4001
ch05Student: _1.Experienced tax professionals generally can answer most tax questions without the need for taxresearch.True False2.A single tax issue may result in multiple research questions.True False3.The first step in the tax research proces
FAU - ACCOUNTING - 4001
ch06Student: _1.For federal tax purposes, gross income from the sale of tangible goods is reduced by the seller's cost ofgoods sold.True False2.Taxable income is defined as gross income minus allowable deductions and credits.True False3.A taxpay
FAU - ACCOUNTING - 4001
ch07Student: _1.A basic premise of federal income tax law is that an expense is deductible unless the Internal RevenueCode specifically prohibits the deduction.True False2.The after-tax cost of an expenditure is minimized when the expenditure is de
FAU - ACCOUNTING - 4001
ch08Student: _1.Gain or loss realized on the disposition of property is recognized unless the tax law provides anonrecognition exception.True False2.According to the realization principle, an increase in the value of an asset is not accounted for a
FAU - ACCOUNTING - 4001
ch09Student: _1.Tax neutrality for asset exchanges is the exception rather than the rule.True False2.When unrelated parties agree to an exchange of noncash properties, the economic presumption is that theproperties are of equal value.True False3.
FAU - ACCOUNTING - 4001
ch10Student: _1.Haddie's Hats is a regular corporation. The business must file an income tax return each year to report itstaxable income or loss and pay any related taxes.True False2.A partnership is an unincorporated business activity owned by at
FAU - ACCOUNTING - 4001
ch11Student: _1.In terms of dispersal of ownership, corporations are classified as either closely held or publicly held.True False2.The corporate characteristic of limited liability is more important to the shareholders than thecharacteristic of ce
FAU - ACCOUNTING - 4001
ch12Student: _1.The net operating losses of a C corporation can be carried back to reduce its taxable income in prior taxyears.True False2.Bart owns 100% of an S corporation that had a net operating loss in the current year. If there is sufficient
FAU - ACCOUNTING - 4001
ch13Student: _1.In the United States, corporations are subject only to taxes imposed by the federal government.True False2.The federal income tax deduction allowed for state income taxes paid decreases the cost of the statetaxes.True False3.If a
FAU - ACCOUNTING - 4001
ch14Student: _1.Harry and Sally were married on December 23, 2011. Their income for the entire year is reported on ajoint return.True False2.A taxpayer who knowingly signs a joint return on which his spouse has failed to report her income isliable
FAU - ACCOUNTING - 4001
ch15Student: _1.The classification of a worker as an employee or an independent contractor determines how much payrolltax a company must pay.True False2.Employers must withhold state and federal income tax from compensation paid to independentcont
FAU - ACCOUNTING - 4001
ch16Student: _1.The tax consequences of a business activity are generally the same as the tax consequences of aninvestment activity.True False2.The income generated from an investment activity is primarily attributable to invested capital rather th
FAU - ACCOUNTING - 4001
ch17Student: _1.Chad won a car valued at $25,000 from a game show. Because he immediately donated the car to the RedCross, Chad can exclude $25,000 from gross income.True False2.Ben received a $5,000 tuition scholarship from his local community col
FAU - ACCOUNTING - 4001
ch18Student: _1.Employees who deliberately have excess income tax withheld from their salaries in order to receive a taxrefund are making an interest-free loan of the excess withholding to the government.True False2.An individual taxpayer is not re
FIU - ACG - 3341
Cost Accounting, 14e (Horngren/Datar/Rajan)Chapter 2 An Introduction to Cost Terms and PurposesObjective 2.11) Cost objects include:A) productsB) customersC) departmentsD) All of these answers are correct.Answer: DDiff: 2Terms: cost objectObjec
FIU - ACG - 3341
Cost Accounting, 14e (Horngren/Datar/Rajan)Chapter 3 Cost-Volume-Profit AnalysisObjective 3.11) Cost-volume-profit analysis is used primarily by management:A) as a planning toolB) for control purposesC) to prepare external financial statementsD) to
FIU - ACG - 3341
Cost Accounting, 14e (Horngren/Datar/Rajan)Chapter 4 Job CostingObjective 4.11) Job costing information is used:A) to develop strategiesB) to make pricing decisionsC) for external financial reportingD) All of these answers are correct.Answer: DDi
FIU - ACG - 3341
Cost Accounting, 14e (Horngren/Datar/Rajan)Chapter 5 Activity-Based Costing and Activity-Based ManagementObjective 5.11) If products are different, then for costing purposes:A) an ABC costing system will yield more accurate cost numbersB) a simple co
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Cost Accounting, 14e (Horngren/Datar/Rajan)Chapter 7 Flexible Budgets, Direct-Cost Variances, and Management ControlObjective 7.11) The master budget is:A) a flexible budgetB) a static budgetC) developed at the end of the periodD) based on the actu
FIU - ACG - 3341
Cost Accounting, 14e (Horngren/Datar/Rajan)Chapter 8 Flexible Budgets, Overhead Cost Variances, and Management ControlObjective 8.11) Overhead costs have been increasing due to all of the following EXCEPT:A) increased automationB) more complexity in
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FIU - ACG - 3341
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FIU - ACG - 3341
Cost Accounting, 14e (Horngren/Datar/Rajan)Chapter 11 Decision Making and Relevant InformationObjective 11.11) A decision model involves:A) only quantitative analysesB) both quantitative and qualitative analysesC) only qualitative analysesD) a mana
FIU - ACG - 3341
Cost Accounting, 14e (Horngren/Datar/Rajan)Chapter 12 Pricing Decisions and Cost ManagementObjective 12.11) Companies should only produce and sell units as long as:A) there is customer demand for the productB) the competition allows itC) the revenue
FIU - ACG - 3341
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FIU - ACG - 3341
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FIU - ACG - 3341
Cost Accounting, 14e (Horngren/Datar/Rajan)Chapter 15 Allocation of Support-Department Costs, Common Costs, and RevenuesObjective 15.11) The method that allocates costs in each cost pool using the same rate per unit is known as the:A) incremental cost
FIU - ACG - 3341
Cost Accounting, 14e (Horngren/Datar/Rajan)Chapter 16 Cost Allocation: Joint Products and ByproductsObjective 16.11) What type of cost is the result of an event that results in more than one product or servicesimultaneously?A) byproduct costB) joint
FIU - ACG - 3341
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FIU - ACG - 3341
Cost Accounting, 14e (Horngren/Datar/Rajan)Chapter 19 Balanced Scorecard: Quality, Time, and the Theory of ConstraintsObjective 19.11) Quality management provides an important competitive edge because it:A) reduces costsB) increases customer satisfac
FIU - ACG - 3341
Cost Accounting, 14e (Horngren/Datar/Rajan)Chapter 20 Inventory Management, Just-in-Time, and Simplified Costing MethodsObjective 20.11) Which of the following industries would have the highest cost of goods sold percentage relative tosales?A) comput
FIU - ACG - 3341
Cost Accounting, 14e (Horngren/Datar/Rajan)Chapter 21 Capital Budgeting and Cost AnalysisObjective 21.11) Which of the following involves significant financial investments in projects to develop newproducts, expand production capacity, or remodel curr
FIU - ACG - 3341
Cost Accounting, 14e (Horngren/Datar/Rajan)Chapter 23 Performance Measurement, Compensation, and Multinational ConsiderationsObjective 23.11) A report that measures financial and nonfinancial performance measures for various organizationunits in a sin
Saint Louis University-Main Campus - ENGL - 190
Joel VettimattamProfessor Lynn LinderEnglish 190-243 April 2012Annotated BibliographyFernando, Mayanthi. "Reconfiguring Freedom: Muslim Piety and the Limits of Secular Law andPublic Discourse in France." American Ethnologist. 37.1 (2010): 19-35. Pri
Saint Louis University-Main Campus - BIO - 106
Practice QuestionsChapters 32, 33, 34, and 35Dr. DodsonWhich of the following is NOT characteristic ofdeuterostome development?a. Radial cleavageb. Indeterminate developmentc. Blastopore that becomes mouthd. Mesoderm is formed from an out-pocketin