Cobb Douglas Solver
This is a generic calculator designed to solve Cobb-Douglas production function math problems.
This is a generic calculator designed to solve Cobb-Douglas production function math problems.
Does the APV start with the base-case value of the project? Does the APV method forecast project cash flows and discount them at the WACC for the project? Is the APV method useful when debt is paid down on a fixed schedule?
What is the worth of a call option if the stock price is 0? What is the worth of a call option if the stock price is very very high and much greater than the exercise price?
Which of the following is NOT identified as a primary country-specific risk by the authors?
A. Thin equity base
B. Cultural differences
C. Protectionism
D. Transfer risk
Which option does NOT represent a potential drawback of licensing when compared to Foreign Direct Investment (FDI)?
A. possible loss of quality control
B. establishment of a potential competitor in third-country markets
C. possible improvement of the technology by the local licensee, which then enters the original firm’s home market
D. All of the above are potential disadvantages to licensing.
Which option does NOT describe a common attribute of a fronting loan provided to an international subsidiary?
A. The lending bank is located in the subsidiary’s country.
B. The bank lends to the subsidiary firm an amount equal to the parent deposit at a slightly higher interest rate.
C. The parent makes a deposit equal to the size of the desired loan into a large commercial bank.
D. All of the above are typical characteristics of a fronting loan.
You have a stock AND a put option on that stock:
How do the stock price, the exercise price, the risk-free rate, the expiration date, volatility and the passage of time affect the values of calls and puts? (GRID)
Your numbers will vary.