Question: FEN 305 Dec 12, 2022 Fall 2022 7. (3 points) Assume the current ULS. dollar-British spot rate is f0.6993/5. If the current one-year interest rate
FEN 305 Dec 12, 2022 Fall 2022 7. (3 points) Assume the current ULS. dollar-British spot rate is f0.6993/5. If the current one-year interest rate in the U.S, is 5% and the comparable rate ia Britain is 6%5 what is the 1-year forward exchange rate, Fiveak? A. 1.42/3 B. 1.43/5 C. 50.6925 D. 10.706/5 8. (3 points) Suppose that the current exchange rate is e0.80s. The indirect quote from the German perspective is A. Eo.s0/5 B. 51.25.6. C. 50.80L D. Elinss 9. (3 poines) Which one of the following bert defines synergy given the following? VA= Value of firm A Vaa= Valuc of firm R VAB= Valoc of merged firm AB A. (VA+VA)VAn B. VAB(VA+Va) C. Greater of 0 or (VA+VB)VAli D. Grealer of 0 or VAB(VA+VB) 10. (3 points) The focward exchange rate (F) A. May be higher than the spot exchange rate (S) B. May be the lower than the spot exchange rate (S) C. May be the same as the spot exchange rate ( S) D. All of the abowe (Questions 11-14) George's Equipment is planning to acquire Nelsoa Machinery for 565,000 worth of George stock (stock paymeat). Geosge's currently has 4,600 shares of stock oursending at a market price of $31 a share. Nelson's hss 1.600 shares cutstanding at a price of 538 a share. The syrergy valse of the acquisition is $5,000. 11. (3 points) How many shares are receivod by the target shareholders for the accuisition? A. J,710.53 shares B. 2,096,77 shares C. 2,300 shares. D. 3,103,08 shares 12. (3. points) What is the post-metser stock priec per share? A. $45,30 11. 531.00 C. \$31.29 D. \$31.12
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