MGMT310/MGMT 310 Quiz 1 (ALL CORRECT)

Question 1 of 25                                                                                                                                                 4.0 Points

Managers are responsible for getting activities completed efficiently and achieving the firm’s goals by utilizing:

A.Human, financial, and material resources

B.Information, human, and service resources

C.Human resources, organizational competitiveness, and organizational goals

D.Financial resources, top management, and organizational goals

Question 2 of 25                                                                                                                                                 4.0 Points

A difference between management and leadership can be defined in the following way

A.management is human capital, and leadership is directing staff

B. management is getting things done, and leadership is deciding what needs to be done

C. management is getting things done, and leadership is inspiring action taken by others

D. management is a position of authority or power, and leadership is inspiring action taken by others
Question 3 of 25                                                                                                                                                 4.0 Points

Three different types of planning used in the function of management are

A. strategic, tactical, and operational

B. strategic, organizational design, and job design

C. job design, job enrichment, and teamwork

D. strategic, organizational design, and operational

Question 4 of 25                                                                                                                                                 4.0 Points

Triple bottom line refers to the measurement of business performance along

A. social, economic and organizational dimensions

B. social, economic and environmental dimensions

C. economic, organizational, and human performance dimensions

D. environmental, organizational and corporate responsibility

 

Question 5 of 25                                                                                                                                                4.0 Points

The difference between group and team is

A. A collection of people is a group and not necessarily a team

B. Complementary skills are found in a group but not a team

C. The aim and purpose of a group is to perform in the workplace

D. Groups are defined by their relatively small size

 

Question 6 of 25                                                                                                                                                4.0 Points

“The interests of one person should never take precedence over what is best for the company as a whole” is an explanation of which of Fayol’s principles of management:

A. Unity of command

B. Unity of direction

C. Subordination of individual interest

D. Discipline

Question 7 of 25                                                                                                                                                4.0 Points

The term social movement refers to a type of group that:

A. Imitates corporations to improve employee morale in organizations
B. Is focused on specific political or social issues

C. Mimic society

D. Performs activities outside the workplace

Question 8 of 25                                                                                                                                                 4.0 Points

Working with people from different countries can be a challenge because of:

A. Language issues and different cultural norms

B. Cross-cultural misunderstandings

C. Different work skills according to cultural norms

D. Global strategic communication

 

Question 9 of 25                                                                                                                                                 4.0 Points

People in societies where uncertainty avoidance is high want:

A. Are less rule-oriented

B. Tolerate a variety of opinions

C. Are open to change and taking risks

D. Want strict rules, laws and policies

Question 10 of 25                                                                                                                                               4.0 Points

 

 

Firms with clearly communicated, widely understood and collectively shared mission and vision have been shown:

A. To create and advance technology

B. To embrace diversity

C. To perform better than those without them

D. To employ a smarter workforce

Question 11 of 25                                                                                                                                               4.0 Points

Organizational culture is defined by all of the following EXCEPT:

A. Life experiences of the employees

B. Strengths and weakness of the staff

C. Organizational mission and vision statements

D. Education of the employee

 

Question 12 of 25                                                                                                                                               4.0 Points

The number of people who participate in a nominal group technique is generally:

A. 1-5 participants

B. 3-8 participants

C. 6-10 participants

D. 8-14 participants

Question 13 of 25                                                                                                                                               4.0 Points

Mission and vision development are analogous to which step in the principles of management framework:

A. Planning

B. Organizing

C. Leading

D. Controlling

Question 14 of 25                                                                                                                                               4.0 Points

Strategy formulation answers the question:

A. How do we execute a chosen strategy?

B. What should our strategy be?

C. Where does strategy fit in?

D. How is strategy applied to me?

Question 15 of 25                                                                                                                                               4.0 Points

 

The different aspects of strategy as distinguished by Mintzberg include which of the following?:

A. Consequential

B. Differentiate

C. Realized

D. Permanent

Question 16 of 25                                                                                                                                               4.0 Points

Firms that do the product leadership strategy well include which of the following factors:

A. Do not focus on innovation

B. Have superb operations and execution

C. Are in stagnant markets

D. Focus on development, innovation, design, and time to market

Question 17 of 25                                                                                                                                               4.0 Points

 

Which of the following is considered an intangible resources?:

A. Scientific capabilities

B. Production equipment

C. Manufacturing plants

D. Formal reporting structures

Question 18 of 25                                                                                                                                               4.0 Points

The intensity of industry competition and an industry’s profit potential are a function of which of the following forces of competition?:

A. Power of stockholders

B. Power or employees

C. Global economic conditions

D. Threats…

Finance Multiple Choice Options And Derivatives

6.Which of the following statements about the volatility is not true? a. the implied volatility often differs across options with different exercise prices b. the implied volatility equals the historical volatility if the option is correctly priced c. the implied volatility is determined by trial and error d. the implied volatility is nearly linearly related to the option price e. none of the above

 

7.Consider a stock priced at $30 with a standard deviation of 0.3. The risk-free rate is 0.05. There are put and call options available at exercise prices of 30 and a time to expiration of six months. The calls are priced at $2.89 and the puts cost $2.15. There are no dividends on the stock and the options are European. Assume that all transactions consist of 100 shares or one contract (100 options). Use this information to answer questions 7 and

 

8. What is your profit if you buy a call, hold it to expiration and the stock price at expiration is $37? a. $32.89 b. $30.00 c. $27.11 d. $32.15 e. there is no breakeven

 

The profit = $411

 

I believe the choices provided are incorrect

 

8. Consider a stock priced at $30 with a standard deviation of 0.3. The risk-free rate is 0.05. There are put and call options available at exercise prices of 30 and a time to expiration of six months. The calls are priced at $2.89 and the puts cost $2.15. There are no dividends on the stock and the options are European. Assume that all transactions consist of 100 shares or one contract (100 options).

 

Use this information to answer questions 7 and 8. What is the break even stock price at expiration on the transaction described in problem 1? a. $32.89 b. $30.00 c. 27.11 d. $32.15 9. Consider two put options differing only by exercise price. The one with the higher exercise price has Select one: a. the lower breakeven and lower profit potential b. the lower breakeven and greater profit potential

 

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Organizational Learning And Learning Organizations

Assignment 1—Organizational Learning and Learning Organizations

Organizational learning (OL) refers to situations where, to increase effectiveness, managers work on improving their ability to understand and lead the organization and the task environments. In his book, The Fifth Discipline: The Art and Practice of the Learning Organization, Peter Senge (2006) states that managers can promote organizational learning and create a Learning Organization by:

  • Developing personal mastery.
  • Building complex and challenging mental models.
  • Promoting team learning.
  • Building shared vision.
  • Encouraging systems thinking.

Using the University online library resources, locate a minimum of three different scholarly sources on OL.

Respond to the following:

  • From a manager’s standpoint, discuss the applicability of OL to your current workplace (or to a company you know well) in order to improve its performance.
  • Explain what kinds of actions and changes to the organization need to be implemented to achieve this goal.

Write your initial response in a minimum of 400 words. Apply APA standards to citation of sources.

By Friday, January 3, 2014, post your responses to the appropriate Discussion Area.

 

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Managerial Finance Final Exam

.A 6-month put option on Makler Corp.’s stock has a strike price of $47.50 and sells in the market for $8.90.  Makler’s current stock price is $41.00.  What is the exercise value of the option?Answer

$6.10

$7.30

$6.50

$6.05

$6.45

 

Lissa Co.’s stock price is currently $26.75.  A 6-month call option on Lissa’s stock has a strike price of $25 and has an expected volatility of 40% (i.e., expected standard deviation = 40%).  The risk-free rate is 6%.  According to the Black-Scholes option pricing model, what is the value of the option?Answer

$5.05

$4.45

$5.27

$4.28

$3.25

 

If one U.S. dollar buys 1.46 Canadian dollars, how many U.S. dollars can you purchase for one Canadian dollar?Answer

0.7123

0.5548

0.6849

0.5685

0.6781

 

Warren Corporation’s stock sells for $42 per share. The company wants to sell some 20-year, annual interest, $1,000 par value bonds. Each bond would have 75 warrants attached to it, each exercisable into one share of stock at an exercise price of $47. The firm’s straight bonds yield 10%. Each warrant is expected to have a market value of $4.00 given that the stock sells for $42. What coupon interest rate must the company set on the bonds in order to sell the bonds-with-warrants at par?Answer

5.89%

6.74%

6.48%

5.63%

8.03%

 

Operating leases often have terms that include:

maintenance of the equipment by the lessor.

full amortization over the life of the lease.

very high penalties if the lease is cancelled.

restrictions on how much the leased property can be used.

much longer lease periods than for most financial leases.

 

Which of the following statements is most CORRECT?Answer                              A.Preferred stock generally has a higher component cost of capital to the firm than does common stock.

B.   By law in most states, all preferred stock must be cumulative, meaning that the compounded total of all unpaid preferred dividends must be paid before any dividends can be paid on the firm’s common stock.

C.  From the issuer’s point of view, preferred stock is less risky than bonds.

D.  Whereas common stock has an indefinite life, preferred stocks always have a specific maturity date, generally 25 years or less.

E.  Unlike bonds, preferred stock cannot have a convertible feature.

 

Which of the following statements concerning risk management is NOT CORRECT?Answer

A. Risk management can reduce the volatility of cash flows, and this decreases the probability of bankruptcy.

B.   Risk management makes sense for firms directly engaged in activities that involve commodities whose values can be hedged, and it doesn’t make much sense for most other firms.

C.   Companies with volatile earnings pay more taxes than more stable companies due to the treatment of tax credits and the rules governing corporate loss carry-forwards and carry-backs.  Therefore, our tax system encourages risk management to stabilize earnings.

D.  Risk management can reduce the likelihood of low cash flows, and therefore reduce the probability of financial distress.

E.  Risk management involves identifying events that could have adverse financial consequences and then taking actions to prevent and/or to minimize the damage caused by these events.

 

The text gives a number of valid, acceptable reasons for companies to merge.  Which of the following is not acceptable?Answer

A.Synergistic benefits arising from mergers.

B.  Reduction in competition resulting from mergers.

C.  Attempts to stabilize earnings by diversifying.

D. Attempts to minimize taxes by acquiring a firm with large accumulated losses that can be used immediately.

E. Using surplus cash to acquire another firm and prevent unfavorable tax consequences for shareholders.

 

Which of the following statements is CORRECT?Answer

A. An option’s value is determined by its exercise value, which is the market price of the stock less its strike price.  Thus, an option can’t sell for more than its exercise value.

B.  As stock price rises, the premium portion of an option on a stock increases because the difference between the price of the stock and the fixed strike price increases.

C.  If the company is consistently profitable, its call options will always be in the money.

D.   The market value of an option depends in part on the option’s time to maturity and on the variability of the underlying stock’s price.

E. The potential loss on an option decreases as the option sells at higher and higher prices because the profit margin gets bigger.

 

 

Thomson Engineering is issuing new 30-year bonds that have warrants attached.  If not for the attached warrants, the bonds would carry an 11% annual interest rate.  However, with the warrants attached the bonds will pay an 8% annual coupon.  There are 30 warrants attached to each bond, which have a par value of $1,000.  What is the value of the straight-debt portion of the bonds?Answer

A. $739.19

B. $790.93

C.$872.24

D.$835.28

E. $768.75

 

 

Suppose in the spot market 1 U.S. dollar equals 1.5 Canadian dollars.  6-month Canadian securities have an annualized return of 6% (and thus a 6-month periodic return of 3%).  6-month U.S. securities have an annualized return of 6.5% and a periodic return of 3.25%.  If interest rate parity holds, what is the U.S. dollar-Canadian dollar exchange rate in the 180-day forward market?  In other words, how many Canadian dollars are required to purchase one U.S. dollar in the 180-day forward market?Answer

A. 1.8705

B.1.6610

C. 1.5114

D. 1.4964

E. 1.4366

 

If one British pound can purchase $1.90 U.S. dollars, how many British pounds can one U.S. dollar buy?Answer

A. 0.4947

B.0.6105

C. 0.4053

D. 0.5263

E. 0.4579

 

A commercial bank recognizes that its net income suffers whenever interest rates increase.  Which of the following strategies would protect the bank against rising interest rates?

Answer

[removed]   Buying inverse floaters.
[removed]   Entering into an interest rate swap where the bank receives a fixed payment stream, and in return agrees to make payments that float with market interest rates.
[removed]   Purchase principal only (PO) strips that decline in value whenever interest rates rise.
[removed]   Enter into a short hedge where the bank agrees to sell interest rate futures.
[removed]   Sell some of the bank’s floating-rate loans and use the proceeds to make fixed-rate loans.
     

 

 

Suppose hockey skates sell in Canada for 165 Canadian dollars, and 1 Canadian dollar equals 0.71 U.S. dollars.  If purchasing power parity (PPP) holds, what is the price of hockey skates in the United States?

Answer

[removed]   $94.89
[removed]   $99.58
[removed]   $113.64
[removed]   $131.21
[removed]   $117.15

 

Quaid Co.’s common stock sells for $34, pays a dividend of $2.10, and has an expected long-term growth rate of 6%.  The firm’s straight-debt bonds pay 10.8%.  Quaid is planning a convertible bond issue.  The bonds will have a 20-year maturity, pay a 10% annual coupon, have a par value of $1,000, and a conversion ratio of 25 shares per bond.  The bonds will sell for $1,000 and will be callable after 10 years.  Assuming that the bonds will be converted at Year 10, when they become callable, what will be the expected return on the convertible when it is issued?

Answer

[removed]   12.86%
[removed]   13.63%
[removed]   11.32%
[removed]   12.35%
[removed]   11.96%

 

Herbert Engineering is issuing new 15-year bonds that have warrants attached. If not for the attached warrants, the bonds would carry a 9% annual interest rate. However, with the warrants attached the bonds will pay a 6.1% annual coupon. There are 30 warrants attached to each bond, which has a par value of $1,000. What is the value of the straight-debt portion of the bonds?

Answer

[removed]   $796.09
[removed]   $720.27
[removed]   $835.89
[removed]   $766.24
[removed]   $877.69

 

 

Suppose that currently, 1 British pound equals 1.98 U.S. dollars and 1 U.S. dollar equals 1.40 Swiss francs.  How many Swiss francs are needed to purchase 1 pound?

Answer

[removed]   2.3008
[removed]   3.1046
[removed]   2.5225
[removed]   2.8274
[removed]   2.7720

 

 

In the lease versus buy decision, leasing is often preferable

Answer

[removed]   because it has no effect on the firm’s ability to borrow to make other investments.
[removed]   because, generally, no down payment is required, and there are no indirect interest costs.
[removed]   because lease obligations do not affect the firm’s risk as seen by investors.
[removed]   because the lessee owns the property at the end of the lease term.
[removed]   because the lessee may have greater flexibility in abandoning the project in which the leased property is used than if the lessee bought and owned the asset.

 

 

Blenman Corporation, based in the United States, arranged a 2-year, $1,000,000 loan to fund a project in Mexico.  The loan is denominated in Mexican pesos, carries a 11.0% nominal rate, and requires equal semiannual payments.  The exchange rate at the time of the loan was 5.75 pesos per dollar, but it dropped to 5.10 pesos per dollar before the first payment came due.  The loan was not hedged in the foreign exchange market.  Thus, Blenman must convert U.S. funds to Mexican pesos to make its payments.  If the exchange rate remains at 5.10 pesos per dollar through the end of the loan period, what effective annual interest rate will Blenman end up paying on the loan?

Answer

[removed]   23.91%
[removed]   22.76%
[removed]   20.46%
[removed]   21.84%
[removed]   22.99%

 

 

One year ago, a U.S. investor converted dollars to yen and purchased 100 shares of stock in a Japanese company at a price of 3,150 yen per share.  The stock’s total purchase cost was 315,000 yen.  At the time of purchase, in the currency market 1 yen equaled $0.00952.  Today, the stock is selling at a price of 3,465 yen per share, and in the currency market $1…