A company has a debt-to-equity ratio of 42%, sales of €749,000, net income of €41,300, and total debt of €198,400. What is the return on equity (ROE=Net Income/Total Equity)?9.09%8.74%8.41%7.79% A project that provides annual cash flows of €9,377.18 for 12 years costs €67,150 today. At what rate would you be indifferent between accepting the project and rejecting it?9%10%11%12% Yesterday, the president of HB Enterprises received a phone call from a competitor. The competitor is a sole proprietorship. An unexpected family situation has caused the owner to suddenly want to retire and relocate closer to his family. Thus, the assets of the competitor are being offered to HB Enterprises at a bargain basement price. While HB Enterprises had not anticipated purchasing these assets, it was decided that the opportunity was too good to pass up. This illustrates which of the following needs to hold cash?TransactionSpeculativeCompensationPrecautionary If a firm effectively manages its financial risks, what can this firm do?Avoid all long-term financial risksEliminate all the risks faced by the firmReduce the price volatility it facesGuarantee the firm's financial success Which one of the following statements concerning interest rates is the most correct?The effective annual rate decreases as the number of compounding periods per year increases.The effective annual rate equals the annual percentage rate when interest is compounded annually.Borrowers would prefer monthly compounding over annual compounding.Savers would prefer annual compounding over monthly compounding. This...
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Finance and risk management - international business - exams
Six international business exams (last years) for the course Finance and risk management at University of Groningen
- the content of the bundled exams is available for logged in JoHo members only
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