Blades Chapter 3
1. The concern would be the higher interest rate that would have to be paid compared to the
8% we have in the U.S. Also, the delayed conversion is a risk because you do not know if the
value of the baht
Internet Exercise on pg. 97
a. The exchange rate for the Japanese yen is 116.6905.
b. The exchange rate for the Euro is 0.893.
c. Based on questions (a) and (b), those are the amount that you can get to every U.S
Blades Chapter 12
1. A positive would be that the inflows received would be fixed however if high inflation happens then
the cost to make the products would rise and it could also cause the baht to depreciation which mea
BFIN4345 International Finance: Exam 3 review over chapters 9,10,11
1.Which of the following forecasting techniques would best represent the use of today's forward exchange rate
to forecast the future exchange rate?
a. fundamental forecasting.
Describe at least five components of a customer database and how the database
can be used to guide the customer segmentation strategies of a small business
Personal information: name, address, phone number, e-mail, clothing size,
birthday, hobbits and mem
BFIN4345 Things to know for Exam 1: Covering articles and chapters 1,2,3
1) Short answer- In a MNC who is the agent and who is the principle(s)? Is the agency problem in a
MNC greater or smaller than the agency problem for domestic firms. Why?
Final Exam summary
Name five religion making characteristics.
a) James Martineau
b) Matthew Arnold
c) J.G. Frazer
d) Fridrich Schleiermacher
e) Paul Tillich
Name three reasons people are religious (based on the lecture/handout).
a) People are natura
1. Describe fixed assets and how they are recorded, expensed, and reported.
2. Calculate and compare depreciation expense using straight-line,
3. Record the disposal of fixed assets.
4. Describe intangible assets and how they are recorded, expen
1. A certain facility has a design capacity of 2,500 units a day and an effective capacity
of 2,225 units. Name one potential determinant of its effective capacity.
Work breaks, routine maintenance, bad weather
2. What is the volume of output th
Christian Principles in Business Leadership
Page 1 of 3
First Test Study Guide
Basic test format: 20 multiple choice questions, 3 essays
Three basic approaches to ethics
What are they? Simple explanation of what each means
Strengths and weaknesses
Exam II Chapters 7, 8, 9 plus Wal-Mart Video
1. Who is the Father of Modern Economics
2. What does MPC stand for? What does MPS stand for?
MPC stand for Marginal Propensity to Consume
MPS stand for Marginal Propensity to Supply.
3. What is t
Blades, Inc. Case
1. Well some advantages are of course lower costs to make the product. If Blades products are
in the top 5% in highest prices and we cant find any more ways to cut price of production then
Blades Chapter 2
1. It can work as a double inflation in a way. You get it inflated in the Thai baht and then in the
2. It could be a problem if there is more competition because it could force us to lower our
Blades Chapter 12
QUESTION 4 AND 5
Now repeat your analysis in question 3 but assume that the British
pound and the Thai baht are perfectly correlated. For example, if the
baht depreciates by 5 percent, the pound will also depreciate by 5
Blades Chapter 18
1. No, the effective financing cost of the notes should not be affected by exchange rate movements.
Blades will use the cash flows generated by the Thai subsidiary to pay the interest and principal of t
Blades Chapter 4
1. It would be expected for the baht to appreciate by 18.18%:
The basic factors are the supply and demand of the currency. In general, a large supply of the currency
Integrated Case Pg. 413
2. The New Zealand dollar, Mexican peso, and Singapore dollar are expected to move in tandem. The
dollar value of exposure on net inflows is about equal to the dollar value of exposure on net o
Blades Chapter 9
1. Blades could benefit in many ways. One, Blades would benefit from forecasting because their net
inflows is in baht and is effected by exchange rates. Two, Blades is looking into making a subsidiary an
Blades Chapter 5
1. Since the firm does not want to exceed paying 5% above the existing spot rate so Id suggest the call
option with the exercise price of $0.00756. Therefore the firm would have to accept a higher premi
The International Financial Environment
1. Due to the change in inflation, the U.S trade deficit should increase because of the rise in price of the
exports. This will affect the demand for U.S exports, th
Petrodollar Article Questions
1. Because it was being backed by gold at a fixed rate, it was completely convertible into gold at
a fixed rate of $35 per ounce. They probably saw it at the time as being an easier way of doi
Part 2 of Exam 2
1. Triangular arbitrage would not be feasible because:
Proper cross exchange rate = $1.596/$0.7 = 2.28
2. Covered interest arbitrage can only be feasible if there is no interest rate pari
Study Guide for Fourth Test
For comprehensive section: Review whole homework packet.
For unit section: Review homework chapters 8, 9, 10 (Second-Isaiah), 11 (Jeremiah,
Ezekiel), 13, Judaism from Exilic Return