Question 31

The Treasurer of Z intends to use interest rate options to set an interest rate cap on Z's borrowings.
Which of the following statement is correct?
  • Question 32

    AA is considering changing its capital structure. The following information is currently relevant to AA:

    The gearing rating raising the new debt finance will be 50%.
    Which THREE of the following statement about the impact of AA's change in capital structure are true under Modigliani and Miler's capital structure theory with tax.
  • Question 33

    A company in country T is considering either exporting its product directly to customers in country P or establishing a manufacturing subsidiary in country P.
    The corporate tax rate in country T is 20% and 25% tax depreciation allowances are available Which TIIRCC of the following would be considered advantages of establishing a subsidiary in country T?
  • Question 34

    Company X is based in Country A, whose currency is the A$.
    It trades with customers in Country B, whose currency is the B$.
    Company X aims to maintain its revenue from exports to Country B at 25% of total revenue.
    Company A has the following forecast revenue:

    The forecast revenue from Country B has assumed an exchange rate of A$1/B$2, that is A$1 = B$2.
    If the B$ depreciates against the A$ by 10%, the ratio of revenue generated from Country B as a percentage of total revenue will:
  • Question 35

    ADC is planning to acquire DEF in order to benefit from the expertise of DEF's owner 'managers Both are Listed companies. ADC is trying to decide whether to offer cash or shares in consideration for DEF's shares.
    Which THREE of the following are advantages to ABC of offering shares to acquire CEF?