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    Midterm Test - Second Chance!

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    1. The document is a midterm test with multiple questions about finance topics for CYZ Inc., a Korean company establishing manufacturing in Vietnam. 2. Question 2 provides detailed forecasts for CYZ's new Vietnam project over 3 years, including revenue, costs, tax rates, exchange rates, and asks to calculate weighted average cost of capital, NPV with and without hedging, and other financial metrics. 3. Question 3 asks about how increasing or decreasing subsidiary financing affects a multinational corporation's global capital structure and how the parent company would respond if the foreign creditor increases loan rates.

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    Midterm Test - Second Chance!

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    1. The document is a midterm test with multiple questions about finance topics for CYZ Inc., a Korean company establishing manufacturing in Vietnam. 2. Question 2 provides detailed forecasts for CYZ's new Vietnam project over 3 years, including revenue, costs, tax rates, exchange rates, and asks to calculate weighted average cost of capital, NPV with and without hedging, and other financial metrics. 3. Question 3 asks about how increasing or decreasing subsidiary financing affects a multinational corporation's global capital structure and how the parent company would respond if the foreign creditor increases loan rates.

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    bài thi giữa kì tài chính công ty đa quốc gia

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    Midterm test - Second Chance!

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    1. The document is a midterm test with multiple questions about finance topics for CYZ Inc., a Korean company establishing manufacturing in Vietnam. 2. Question 2 provides detailed forecasts for CYZ's new Vietnam project over 3 years, including revenue, costs, tax rates, exchange rates, and asks to calculate weighted average cost of capital, NPV with and without hedging, and other financial metrics. 3. Question 3 asks about how increasing or decreasing subsidiary financing affects a multinational corporation's global capital structure and how the parent company would respond if the foreign creditor increases loan rates.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    50 views2 pages

    Midterm Test - Second Chance!

    Uploaded by

    Lê Thái Thiên Hương
    1. The document is a midterm test with multiple questions about finance topics for CYZ Inc., a Korean company establishing manufacturing in Vietnam. 2. Question 2 provides detailed forecasts for CYZ's new Vietnam project over 3 years, including revenue, costs, tax rates, exchange rates, and asks to calculate weighted average cost of capital, NPV with and without hedging, and other financial metrics. 3. Question 3 asks about how increasing or decreasing subsidiary financing affects a multinational corporation's global capital structure and how the parent company would respond if the foreign creditor increases loan rates.

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    11:04 29/03/2023 Midterm test - Second Chance!

    Câu hỏi 1

    Chưa trả lời

    Đạt điểm 2,00

    Đặt cờ

    Please explain the benefits and the advantages of all factors that affect the cost of capital of MNCs.

    Kích thước tối đa cho các tập tin mới: 20MB

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    Câu hỏi 2

    Chưa trả lời

    Đạt điểm 6,00

    Đặt cờ

    CYZ Inc. in Korean plans to build new manufacturing to produce and sell products in Vietnam. The initial investment for the manufactory is financed 35% by debt and 65%
    by issuing new stock. The company has to pay loan principal by straight-line method in 3 years.  The Inc. plans to reinvest retained earnings to expand the production
    line.

    The Vietnamese government imposes a 15% income tax, a 10% withholding tax and does not have any restrictions on remitting funds.  The annual fixed asset depreciation
    rate is 25% and the 85% remaining value of the fixed asset is recognized as after-tax salvage value.

    The company forecasts the detailed business activities of the project for the next three years as follows.

    1Loan interest rate 12%


    2Cost of issuing stock 14%
    3Retained earnings 15%
    4Initial Investment KRW            2,000,000.00
    Year 0 Year 1  Year 2 Year 3
                                                                                          
    5The demand for products per year (unit)
    30,000 40,000 50,000
                                                                
    6Selling price per unit (VND)                                    1,500
    1,000 1,200
    7Variable cost per unit (VND)                                   250                                     230                                        220
                                                                   
    8Annual lease and other fixed expenses (VND)
    1,000,000 1,000,000 1,000,000
                                                                                               
    9Spot exchange rate (KRW/VND)                                    18.00
    18.00 19.00 20.00
                                                                
    10Forward exchange rate (KRW/VND)                                    18.00
    18.00 18.00
    % hedging of the remitted fund after
    11 90.0%
    withholding taxes

    a Weighted Average Cost of Capital


    b Interest expenses

    c Loan principal payment

    d Annual Fixed asset depreciation

    e Salvage value

    f Annual Retained earing

    g NPV in non-hedging case 


    h NPV in hedging case
    https://lms.uef.edu.vn/mod/quiz/attempt.php?attempt=459492&cmid=303174 2/3
    11:04 29/03/2023 Midterm test - Second Chance!
    g g

    Please upload your full calculation

    Kích thước tối đa cho các tập tin mới: 20MB

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    Câu hỏi 3

    Chưa trả lời

    Đạt điểm 2,00

    Đặt cờ

    Please explain how the increasing or decreasing of subsidiary financing affects the global capital structure
    of MNCs. If the foreign creditor wants to charge a higher loan rate, please explain why and how does the
    parent company handle that to keep the global capital structure unchanged?

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     ◄ Group Project Chuyển tới...

    https://lms.uef.edu.vn/mod/quiz/attempt.php?attempt=459492&cmid=303174 3/3

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