2) In the following scenarios, do you expect the American firm to have high or low operating exposure to currency fluctuations and why. a) American Publishing Inc. produces books domestically and has no exports. Its primary competitor is a British firm. Assume that the price elasticity of demand is high for all firms. b) American Chocolate produces candy and has no exports. Its primary competitor is a Swiss firm. Cocoa is the primary input and manufacturing cost for both firms. Cocoa is only available from Brazil. c) American Lamp only sells lamps in the U. S. and has a German competitor. Assume American Lamp moves all its manufacturing operations to Denmark, but continues to sell only to the American market. On what does your answer depend

What preforms the best over the long term? a) bonds b) mutual funds c) stocks d) certificate of deposit

If a firm plans to issue new stock, flotation costs (investment bankers' fees) should not be ignored. there are two approaches to use to account for flotation costs. the first approach is to add the sum of flotation costs for the debt, preferred, and common stock and add them to the initial investment cost. because the investment cost is increased, the project's expected return is reduced so it may not meet the firm's hurdle rate for acceptance of the project. the second approach involves adjusting the cost of common equity as follows: . the difference between the flotation-adjusted cost of equity and the cost of equity calculated without the flotation adjustment represents the flotation cost adjustment. quantitative problem: barton industries expects next year's annual dividend, d1, to be $1.90 and it expects dividends to grow at a constant rate g = 4.3%. the firm's current common stock price, p0, is $22.00. if it needs to issue new common stock, the firm will encounter a 6% flotation cost, f. assume that the cost of equity calculated without the flotation adjustment is 12% and the cost of old common equity is 11.5%. what is the flotation cost adjustment that must be added to its cost of retaine

Leticia has worked for 20 years in the public relations department of a large firm and has been the vice-president for the past ten years. it is unlikely she will ever be promoted to the top executive position in her firm even though she has directed several successful projects and is quite capable. her lack of promotion is an illustration of (a) the "glass ceiling" (b) the "glass elevator" (c) the "mommy track" (d) sexual harassment