國際金融（原書第12版） 教學(xué)課件作者 大衛(wèi).艾特曼（David Eiteman）阿瑟.斯通西 chapter 15

《國際金融（原書第12版） 教學(xué)課件作者 大衛(wèi).艾特曼（David Eiteman）阿瑟.斯通西 chapter 15》由會員分享，可在線閱讀，更多相關(guān)《國際金融（原書第12版） 教學(xué)課件作者 大衛(wèi).艾特曼（David Eiteman）阿瑟.斯通西 chapter 15（10頁珍藏版）》請在裝配圖網(wǎng)上搜索。

1、Multinational Business Finance, 12e (Eiteman, et al) Chapter 15 Sourcing Equity Globally 15.1 Designing a Strategy to Source Equity Globally Multiple Choice 1) The choice of when and how to source equity globally is usually aided early on by the advice of A) an investment banker. B

2、) your stock broker. C) a commercial banker. D) an underwriter. Answer: A Diff: 1 Topic: 15.1 Designing a Strategy to Source Equity Globally Skill: Recognition 2) Investment banking services include which of the following? A) advising when a security should be cross-listed B) preparati

3、on of stock prospectuses C) help to determine the price of the issue D) all of the above Answer: D Diff: 1 Topic: 15.1 Designing a Strategy to Source Equity Globally Skill: Conceptual 3) Which of the following is the typical order of sourcing capital abroad? A) An international bond iss

4、ue, then cross listing the outstanding issues on other exchanges, then an international bond issue in the target market. B) An international bond issue in the target market then cross listing the outstanding issues on other exchanges, then an international bond issue. C) An international bond issu

5、e, then an international bond issue in the target market, then cross listing the outstanding issues on other exchanges. D) Cross listing the outstanding issues on other exchanges, then an international bond issue, then an international bond issue in the target market. Answer: C Diff: 2 Topic:

6、15.1 Designing a Strategy to Source Equity Globally Skill: Conceptual 4) ________ are negotiable certificates issued by a bank to represent the underlying shares of stock, which are held in trust at a foreign custodian bank. A) Negotiable CDs B) International mutual funds C) Depositary recei

7、pts D) Eurodeposits Answer: C Diff: 2 Topic: 15.1 Designing a Strategy to Source Equity Globally Skill: Recognition 5) Depositary receipts traded outside the United States are called ________ depositary receipts. A) Euro B) Global C) American D) none of the above Answer: B Diff: 1 T

8、opic: 15.1 Designing a Strategy to Source Equity Globally Skill: Recognition 6) Each ADR represents ________ of the shares of the underlying foreign stock. A) a multiple B) 100 C) 1 D) ADRs have nothing to do with foreign stocks. Answer: A Diff: 2 Topic: 15.1 Designing a Strategy to

9、Source Equity Globally Skill: Recognition 7) Which of the following is NOT an advantage of ADRs to U.S. shareholders? A) Transfer of ownership is done in the U.S. in accordance with U.S. laws. B) In the event of the death of the shareholder, the estate does not go through a foreign court. C)

10、 Settlement for trading is generally faster in the United States. D) All of the above are advantages of ADRs. Answer: D Diff: 2 Topic: 15.1 Designing a Strategy to Source Equity Globally Skill: Recognition 8) ADRs that are created at the request of a foreign firm wanting its shares traded

11、 in the United States are ________. A) facilitated B) unfacilitated C) sponsored D) unsponsored Answer: C Diff: 2 Topic: 15.1 Designing a Strategy to Source Equity Globally Skill: Recognition 9) Who pays the costs of creating a sponsored ADR? A) the foreign firm whose stocks underlie

12、the ADR B) the U.S. bank creating the ADR C) both the U.S. bank and the foreign firm D) the SEC since they require the regulation Answer: A Diff: 2 Topic: 15.1 Designing a Strategy to Source Equity Globally Skill: Recognition 10) Level I ADRs trade primarily A) on the New York Stock Exch

13、ange. B) on the American Stock Exchange. C) over the counter or pink sheets. D) Level I ADRs typically do not trade at all, but instead are privately issued and held until maturity. Answer: C Diff: 2 Topic: 15.1 Designing a Strategy to Source Equity Globally Skill: Recognition 11) Level

14、 II ADRs must meet A) U.S. GAAP standards. B) home country accounting standards. C) both U.S. GAAP and home country standards. D) none of the above Answer: A Diff: 2 Topic: 15.1 Designing a Strategy to Source Equity Globally Skill: Conceptual 12) Level ________ is the easiest standard

15、to satisfy for issuing ADRs. A) 144a B) III C) II D) I Answer: D Diff: 1 Topic: 15.1 Designing a Strategy to Source Equity Globally Skill: Recognition 13) Level III ADR commitment applies to A) firms that want to list existing shares on the NYSE. B) banks issuing foreign mutual funds

16、. C) ADR issues of under $25,000. D) the sale of a new equity issued in the United States. Answer: D Diff: 2 Topic: 15.1 Designing a Strategy to Source Equity Globally Skill: Recognition 14) By cross listing and selling its shares on a foreign stock exchange a firm typically tries to acc

17、omplish which of the following? A) Improve the liquidity of its existing shares. B) Increase its share price. C) Increase the firm's visibility. D) all of the above Answer: D Diff: 2 Topic: 15.1 Designing a Strategy to Source Equity Globally Skill: Conceptual True/False 1) Most firms

18、raise their initial capital in foreign markets. Answer: FALSE Diff: 1 Topic: 15.1 Designing a Strategy to Source Equity Globally Skill: Conceptual 2) ADRs cannot be exchanged for the underlying shares of the foreign stock, therefore, arbitrage cannot keep the prices in line with the foreig

19、n price of the stock. Answer: FALSE Diff: 2 Topic: 15.1 Designing a Strategy to Source Equity Globally Skill: Conceptual 3) An unsponsored ADR may be initiated without the approval of the foreign firm with the underlying stock. Answer: FALSE Diff: 1 Topic: 15.1 Designing a Strategy to

20、 Source Equity Globally Skill: Recognition 4) ADRs are considered an effective way for firms to improve the liquidity of their stock, especially if the home market is small and illiquid. Answer: TRUE Diff: 2 Topic: 15.1 Designing a Strategy to Source Equity Globally Skill: Conceptual

21、Essay 1) ADRs are a popular investment tool for many U.S. investors. In recent years several alternatives for investing in foreign equity securities have become available for U.S. investors, yet ADRs remain popular. Define what an ADR is and provide at least three examples of the advantages they

22、 may hold over alternative foreign investment vehicles for U.S. investors. Answer: Depositary receipts are negotiable certificates issued by a bank to represent the underlying shares of stock held in trust at a foreign custodian bank. Those receipts traded in the U.S. and denominated in dollars ar

23、e called American depositary receipts (ADR). Because ADRs can be exchanged for the underlying foreign security, arbitrage keeps the prices in line. Even though U.S. investors can invest directly into some foreign equity markets, ADRs do offer some technical advantages. Among those advantages are tha

24、t dividends are received in dollars rather than a foreign currency, ADRs are in registered form rather than bearer form, transfer of ownership is done in accordance with U.S. laws, and in the event of death, probate is in the U.S. and not abroad. Taxes are easier, trading costs are typically lower,

25、and settlement is also faster. Diff: 3 Topic: 15.1 Designing a Strategy to Source Equity Globally Skill: Conceptual 15.2 Foreign Equity Listing and Issuance Multiple Choice 1) The stock exchange with the greatest value of shares traded is ________. A) NYSE B) Tokyo C) Nasdaq D) Lon

26、don Answer: A Diff: 1 Topic: 15.2 Foreign Equity Listing and Issuance Skill: Recognition 2) The number of foreign firms traded on the London exchange is ________ than the number traded on the NYSE, and the costs of listing and disclosure in London are ________ those for the NYSE. A) less

27、than; less than B) less than; greater than C) greater than; less than D) greater than; greater than Answer: D Diff: 2 Topic: 15.2 Foreign Equity Listing and Issuance Skill: Recognition True/False 1) The Tokyo exchange is the number one choice of firms looking to gain liquidity by cro

28、ss-listing their equity securities. Answer: FALSE Diff: 1 Topic: 15.2 Foreign Equity Listing and Issuance Skill: Recognition 2) The least liquid stock markets as identified by the authors offer little liquidity for their own domestic firms, and are of little value to foreign firms. Answer

29、: TRUE Diff: 1 Topic: 15.2 Foreign Equity Listing and Issuance Skill: Conceptual 15.3 Effect of Cross-Listing and Equity Issuance on Share Price Multiple Choice 1) Your authors note several empirical studies that have found A) no share price effect for foreign firms that cross-list o

30、n major U.S. exchanges. B) a positive share price effect for foreign firms that cross-list on major U.S. exchanges. C) a negative share price effect for foreign firms that cross-list on major U.S. exchanges. D) none of the above Answer: B Diff: 2 Topic: 15.3 Effect of Cross-Listing and Equit

31、y Issuance on Share Price Skill: Recognition 2) Empirical evidence shows that new issues of equity by domestic firms in the U.S. market typically has a ________ stock price reaction and new equity issues in the U.S. markets by foreign firms with segmented domestic markets have a ________ stock

32、price reaction. A) negative; negative B) positive; negative C) negative; positive D) positive; positive Answer: C Diff: 2 Topic: 15.3 Effect of Cross-Listing and Equity Issuance on Share Price Skill: Conceptual 3) In addition to gaining liquidity, which of the following could also be c

33、onsidered a legitimate reason for cross-listing equity? A) enhance a firm's local image B) become more familiar with the local financial community C) get better local press coverage D) all of the above Answer: D Diff: 2 Topic: 15.3 Effect of Cross-Listing and Equity Issuance on Share Price

34、 Skill: Conceptual True/False 1) The combined impact of a new equity issue undertaken simultaneously with a cross-listing has a more favorable impact on stock price than cross-listing alone. Answer: TRUE Diff: 1 Topic: 15.3 Effect of Cross-Listing and Equity Issuance on Share Price Skil

35、l: Recognition 15.4 Barriers to Cross-Listing and Selling Equity Abroad Multiple Choice 1) Another school of thought about the worldwide trend toward fuller and more standardized disclosure rules is that the cost of U.S. level equity capital disclosure A) chases away potential listers of

36、equity. B) is an onerous costly burden. C) leads to fewer foreign firms cross listing in U.S. equity markets. D) all of the above Answer: D Diff: 2 Topic: 15.4 Barriers to Cross-Listing and Selling Equity Abroad Skill: Recognition 2) According to the U.S. school of thought, the worldwid

37、e trend toward fuller and more standardized disclosure rules should ________ the cost of equity capital. A) increase B) decrease C) have no impact on D) none of the above Answer: B Diff: 2 Topic: 15.4 Barriers to Cross-Listing and Selling Equity Abroad Skill: Recognition 3) For the mo

38、st part, U.S. SEC disclosure requirements are ________ stringent than other, non-U.S. equity market rules. A) more B) less C) as equally D) none of the above Answer: A Diff: 1 Topic: 15.4 Barriers to Cross-Listing and Selling Equity Abroad Skill: Recognition True/False 1) Because of

39、 stringent SEC rules, American companies typically do not find foreign disclosure rules to be overly onerous.. Answer: TRUE Diff: 1 Topic: 15.4 Barriers to Cross-Listing and Selling Equity Abroad Skill: Conceptual Essay 1) What are the two schools of thought regarding the worldwide trend

40、 toward increased financial disclosure by publicly traded firms. Explain which school of thought you hold to and why. Answer: The student must give his/her own opinion and supporting background. In either case the following should be noted: Increased disclosure should decrease uncertainty thus inc

41、reasing stock price. However, increased disclosure requirements result in increased costs in the form of initial preparation of financial statements, on-going costs associated with regular development of financial statements, and the costs of gathering and distributing information about the form on

42、an on-going basis. As the authors state, disclosure is a two-edged sword. Diff: 3 Topic: 15.4 Barriers to Cross-Listing and Selling Equity Abroad Skill: Analytical 15.5 Alternative Instruments to Source Equity in Global Markets Multiple Choice 1) Which of the following were NOT ident

43、ified by the authors as an alternative instrument to source equity in global markets? A) Sale of a directed public share issue to investors in a target market. B) Private placements under SEC rule 144a. C) Sale of shares to private equity funds. D) All of the above are alternatives to source equ

44、ity instruments. Answer: D Diff: 2 Topic: 15.5 Alternative Instruments to Source Equity in Global Markets Skill: Recognition 2) A ________ is defined as one that is targeted at investors in a single country and underwritten in whole or part by investment institutions from that country. A)

45、 SEC rule 144a placement B) directed public share issue C) Euroequity public issue D) strategic alliance Answer: B Diff: 2 Topic: 15.5 Alternative Instruments to Source Equity in Global Markets Skill: Recognition 3) The term "euro" as used in the euro equity market implies A) the issue

46、rs are located in Europe. B) the investors are located in Europe. C) both A and B D) none of the above Answer: D Diff: 2 Topic: 15.5 Alternative Instruments to Source Equity in Global Markets Skill: Recognition 4) Private equity funds (PEF) differ from traditional venture capital (VC) fun

47、ds in that A) VC operate mainly in lesser-developed countries while PEF do not. B) VC typically invest in family business whereas PEF do not. C) VC is almost unavailable to emerging markets while PEF capital is available. D) All of the above are true. Answer: C Diff: 2 Topic: 15.5 Alternati

48、ve Instruments to Source Equity in Global Markets Skill: Conceptual 5) Strategic alliances are normally formed by firms that expect to gain synergies from which of the following? A) Economies of scale. B) Economies of scope. C) Complementary marketing. D) all of the above Answer: D Diff:

49、 2 Topic: 15.5 Alternative Instruments to Source Equity in Global Markets Skill: Conceptual True/False 1) SEC rule 144A permits institutional buyers to trade privately placed securities without the previous holding periods restrictions and without requiring SEC registration. Answer: TRUE Diff: 1 Topic: 15.5 Alternative Instruments to Source Equity in Global Markets Skill: Recognition