Tanya Is a Manager at a Global Firm That Has

question 10

Multiple Choice

Tanya is a manager at a global firm that has operations located in Brazil, India, and Japan.Tanya is in the process of making a fundamental analysis in order to forecast exchange rates in each country.Which of the following is a confidence factor that Tanya should consider in trying to predict exchange rate movements in each country?

• A)What are the expectations of the market with respect to the political environment?
• B)Have there been significant national events that have appeared in the news lately?
• C)At what rates do there appear to be buy and sell orders?
• D)What trends do the charts show?

---

Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating the available short-term assets to cover short-term debts.

Book Value

The value of an asset as recorded on the balance sheet, calculated as the cost of an asset minus accumulated depreciation.

Acid-test Ratio

Acid-test ratio is a financial metric that measures a company's ability to pay off its short-term liabilities with its quick assets (cash, marketable securities, and current receivables) without selling any inventory.

Debt-to-equity Ratio

A ratio illustrating the proportional use of shareholder equity and debt in the acquisition of a company's assets.