13. (3 points) What is the actual acquisition cost using the stock payment? A. $65,000 B. $65,251 C. $68,449 D. $70,000 14. (3 points) What is the NPV of the acquisition using the stock payment? A. $3,449 B. $2,649 C. $800 D. $549 15. (3 points) You are a U.S.-based treasurer with $1,000,000 to invest. You observed the following spot exchange rates in the markets. - SI.SO/E - $2.00/2. If a bank quotes you 1.20/, how can you make moncy using the thrce currencies? A. No arbitrage is possible B. With US dollars, buy euros at $1.50/; convert euros to pounds at 1.20/; sell pounds for US dollars at $2.00/ C. With pounds, buy US dollars at $2.00/; convert US dollars to euros at 1.20/; sell euros for US dollars at S1.50/e 16. ( 3 points) If the expected inflation rates are 2.5% in the U.S. and 1% in Japan for the next year, the relative purchasing power parity (relative PPP) suggests that A. The Yen is expected to appreciate against the dollar by about 1.5% B. The US dollar is expected to appreciate against the Yen by about 1.5% C. The Yen is expected to depreciate against the dollar by about 1.5% D. Both B \& C 17. (3 points) Sleep Tight is acquiring Restful Inns for $52,500 in cash. Sleep Tight has 3,000 shares of stock outstanding at a market price of $38 a share. Restful Inns has 2,100 shares of stock outstanding at a market price of $24 a share. Neither firm has any debt. The incremental value of the acquisition is $1,700. What is the price per share of Sleep Tight after the acquisition? A. $36.92 B. $37.30 C. $37.87 D. $39.19 13. (3 points) What is the actual acquisition cost using the stock payment? A. $65,000 B. $65,251 C. $68,449 D. $70,000 14. (3 points) What is the NPV of the acquisition using the stock payment? A. $3,449 B. $2,649 C. $800 D. $549 15. (3 points) You are a U.S.-based treasurer with $1,000,000 to invest. You observed the following spot exchange rates in the markets. - SI.SO/E - $2.00/2. If a bank quotes you 1.20/, how can you make moncy using the thrce currencies? A. No arbitrage is possible B. With US dollars, buy euros at $1.50/; convert euros to pounds at 1.20/; sell pounds for US dollars at $2.00/ C. With pounds, buy US dollars at $2.00/; convert US dollars to euros at 1.20/; sell euros for US dollars at S1.50/e 16. ( 3 points) If the expected inflation rates are 2.5% in the U.S. and 1% in Japan for the next year, the relative purchasing power parity (relative PPP) suggests that A. The Yen is expected to appreciate against the dollar by about 1.5% B. The US dollar is expected to appreciate against the Yen by about 1.5% C. The Yen is expected to depreciate against the dollar by about 1.5% D. Both B \& C 17. (3 points) Sleep Tight is acquiring Restful Inns for $52,500 in cash. Sleep Tight has 3,000 shares of stock outstanding at a market price of $38 a share. Restful Inns has 2,100 shares of stock outstanding at a market price of $24 a share. Neither firm has any debt. The incremental value of the acquisition is $1,700. What is the price per share of Sleep Tight after the acquisition? A. $36.92 B. $37.30 C. $37.87 D. $39.19
