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NEW QUESTION: 1
Robert Williams is a junior analyst at Anderson Brothers, a large Wall Street brokerage firm. He reports to Will McDonald, the chief economist for Anderson Brothers. McDonald provides economic research, forecasts, and interpretation of economic data to all of Anderson's investment departments, as well as the firm's clients. McDonald has asked Williams to analyze economic trends in the country of Bundovia. The currency of Bundovia is the Bunco (BU).
Williams first analyzes the effect of rising nominal Bundovian interest rates relative to U.S interest rates on the supply and demand for BU. He determines that the increase in Bundovian nominal interest rates would increase the demand for BU and, because the BU supply curve is upward sloping, the BU will appreciate and the equilibrium quantity of BU will increase proportionately.
Bundovia has announced plans to impose either a tariff or a quota on semiconductor imports from the United States. McDonald also asks Williams to analyze the potential effect on Bundovian Semiconductors, the dominant semiconductor manufacturer located in Bundovia. Currently, Bundovian Semiconductors is not competitive in the global semiconductor market because its higher production costs make it unable to generate profits at the current world market price. Williams concludes that the imposition of either a tariff or quotas would benefit Bundovian Semiconductors. The company would become competitive with foreign producers in its domestic semiconductor market because imports would be reduced and domestic production would rise.
Exhibit 1 shows the trend in the average BU/USD exchange rate over the past three years.

Williams asks the bank for a GBP/SFr cross rate.
From the same bank, Williams receives the following forward rate quotes in the USD/GBP market:
* 30-day forward rate: USD/GBP = USD/GBP = 2.0045 - 55
* 60-day forward rate: USD/GBP = USD/GBP = 2.0075 - 85
Williams has uncovered a potential arbitrage opportunity in the foreign exchange markets. The current spot rate is $2.00 per BU. The Bundovian risk-free interest rate is 3%, and the one-year forward rate is $2.10 per BU. The U.S. risk-free rate is 5%.
From 2006 to 2008, the Bunco has:
A. depreciated, and Bundovia residents will find U.S. goods cheaper.
B. depreciated, and Bundovia residents will find U.S. goods more expensive.
C. appreciated, and Bundovia residents will find U.S. goods more expensive.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
The BU/USD exchange rate is increasing over time, which means the USD has appreciated relative to the BU, and the BU has depreciated relative to the USD. Another way to see this is to recognize that it .takes more BU to buy one USD in 2008 than in 2006, which means the BU is depreciating relative to the U.S.
dollar. Because the BU has depreciated, Bundovian residents will find U.S. goods more expensive. (Study Session 4, LOS 17.a)

NEW QUESTION: 2
What steps would you take to debug an Application Engine program using the PeopleSoft Application Engine debugger? (Choose all that apply.)
A. On the sign-on page, select the debug settings for PeopleSoft Application Engine Debug.
B. View the results in the Debugger window.
C. Execute the Application Engine program from Application Designer.
D. View the file DBG1.tmp in the Temp directory.
E. Select the Debug check box on the Process Scheduler tab in Configuration Manager.
F. View the Debug log in Process Monitor.
G. In Application Designer, select Debug, Application Engine Debug Mode.
Answer: B,C,E

NEW QUESTION: 3
Seasons, Inc. has just decided to issue 1 million shares of new equity. The firm has had a steady dividend growth of 3% and is expected to continue along this path, having just paid a $3.23 per share dividend. The flotation costs for the new equity amount to 2.2% of the total capital raised and the firm receives $31.4 million before flotation costs, calculate the cost of external equity.
A. 14.19%
B. 13.52%
C. 13.83%
D. 13.23%
Answer: C
Explanation:
Explanation/Reference:
Explanation:
IF F is the percentage flotation cost and P is the amount of new equity raised per new share, then Ke = D1/
[P(1-F)] + g, where Ke is the cost of external equity. Here, g = 3%, D1 = 3.23*(1+3%) = $3.32, P = $31.4 and F = 2.2%. Therefore, Ke = 3.32/(31.4*(1-0.022)) + 3% = 13.83%.

NEW QUESTION: 4
Which two tasks should an administrator perform prior to upgrading NetBackup Appliances to version 3.1.2?
(Choose two.)
A. use the Migration Utility to capture pre-upgrade settings within a NetBackup Catalog Backup
B. obtain necessary third-party plug-ins
C. decrease the size of the configuration volume
D. delete previously downloaded release updates, client packages, and client add-ons
E. reset the appliance user password to the default value
Answer: B,D