【单选题】Polaris Inc. has a significant amount of bonds outstanding denominated in yen because of the attractive variable rate available to the firm in yen when the loan was made. However, Polaris does not hav...
A.
doing nothing to offset the need for yen
B.
developing a currency swap of paying dollars and receiving yen
C.
developing an interest rate swap of receiving a variable rate while paying a fixed rate
D.
Polaris may engage in any of the strategies to a varying degree of effectiveness.
【单选题】Consider a firm called BAT Corp., whose earnings per share are $25. Assuming the market capitalization rate is 15% per year. Which of the following investment strategies will result in the highest sto...
A.
Reinvesting 5% of earnings each year into projects with return of 18% per year
B.
Reinvesting 25% of earnings each year into projects with return of 18% per year
C.
Reinvesting 50% of earnings each year into projects with return of 15% per year
D.
Reinvesting 75% of earnings each year into projects with return of 15% per year
【单选题】Consider a firm called T&T Corporation, whose earnings per share are $15. Assuming the market capitalization rate is 18% per year. Which of the following investment strategies will result in the highe...
A.
reinvests 60% of its earnings each year into new investments that yield a rate of return of 18% per year
B.
reinvests 80% of its earnings each year into new investments that yield a rate of return of 18% per year
C.
reinvests 20% of its earnings each year into new investments that yield a rate of return of 20% per year
D.
reinvests 40% of its earnings each year into new investments that yield a rate of return of 20% per year