Get premium membership and access revision papers, questions with answers as well as video lessons.

Hba2303:Financial Accounting Question Paper

Hba2303:Financial Accounting

Course:Bachelor Of Commerce

Institution: Meru University Of Science And Technology question papers

Exam Year:2013

QUESTION ONE
(a) Explain by 4 reasons why the Agency Costs in a Multinational Corporation (MNC) are higher than domestic companies. (8Marks)
(b) Indicating their objectives, describe 4 international banking agencies that facilitate international trade. (12Marks)
(c) Highlight 3 reasons why a corporation in Kenya may be wishing to invest in the International foreign markets. (6Marks)
(d) Explain 2 forms in which a firm can be exposed to international risk. (4Marks)
QUESTION TWO
(a) Discuss 4 types of exchange rate systems by use of relevant examples. (10Marks)
(b) Explain any 5 determinants of the exchange rate. (10Marks)
2
QUESTION THREE
(a) Explain 4 reasons why a Kenyan company quoted at the NSE would wish to cross-list its shares in Uganda. (8Marks) (b) Explain the meaning of the following terms as used in International Financial Markets. (i) Straight fixed rate issue bond (ii) Futures/forwards (iii) Options (iv) Dual currency bonds (v) Commercial paper (vi) Swaps
(12 Marks)
QUESTION FOUR
(a) Explain 5 factors to consider in MNC capital budgeting. (10Marks) (b) Assume that the one year forward rate is used as the forecast of the future spot rate. The Malysian Ringits Spot rate is $20, while its one year forward rate is $19. The Malysian one year interest is 11%. What is the expected effective yield on one year deposit in Malysia by a USA (American) firm? (10Marks)

Hba2303:Financial Accounting Question Paper

More Question Papers

Popular Exams