F3 Exam Dumps | HHH Company has a fixed rate loan at 10.0%, but wishes to swap to variable. It can borrow at the risk-free

<< Prev Question Next Question >>

Question 26/182

HHH Company has a fixed rate loan at 10.0%, but wishes to swap to variable. It can borrow at the risk-free rate +8%. The bank is currently quoting swap rates of 3.1% (bid) and 3.5% (ask). What net rate will HHH Company pay if it enters into the swap?

A. Risk-free rate +8%

B. Risk-free rate +6.9%

C. Risk-free rate +6.5%

D. Risk-free rate+3.1%

Question List (182q): Question 1: A company has in a 5% corporate bond in issue on which there...; Question 2: B has a S3 million loan outstanding on which the interested ...; Question 3: A company has accumulated a significant amount of excess cas...; Question 4: Company W has received an unwelcome takeover bid from Compan...; Question 5: A listed company in a high growth industry, where innovation...; Question 6: A major energy company, GDE, generates and distributes elect...; Question 7: Company YZZ has made a bid for the entire share capital of C...; Question 8: Company A is planning to acquire Company B. Company A's mana...; Question 9: Clinic A provides free healthcare to all members of the comm...; Question 10: A company is currently all-equity financed with a cost of eq...; Question 11: An unlisted company operates in a niche market, exploring th...; Question 12: Which TWO of the following situations offer arbitrage opport...; Question 13: A company's gearing (measured as debt/(debt + equity)) is cu...; Question 14: Company A has made an offer to take over all the shares in C...; Question 15: BBA is a wholly owned subsidiary of AAB BBA operates in coun...; Question 16: Company X is an established, unquoted company which provides...; Question 17: WX, an advertising agency, has just completed the all-cash a...; Question 18: The Board of Directors of a small listed company engaged in ...; Question 19: A company's current earnings before interest and taxation ar...; Question 20: The directors of the following four entities have been discu...; Question 21: The directors of a unlisted manufacturing company have prepa...; Question 22: A company proposes to value itself based on the net present ...; Question 23: A is a listed company. Its shares trade on a stock market ex...; Question 24: Which THREE of the following are the most likely exit routes...; Question 25: A company is deciding whether to offer a scrip dividend or a...; Question 26: HHH Company has a fixed rate loan at 10.0%, but wishes to sw...; Question 27: PPP's home currency is the PS. An overseas customer is due t...; Question 28: A company is deciding whether to offer a scrip dividend or a...; Question 29: Company P is a pharmaceutical company listed on an alternati...; Question 30: Which THREE of the following statements are disadvantages of...; Question 31: Company A, a listed company, plans to acquire Company T, whi...; Question 32: A company is preparing an integrated report according to the...; Question 33: Which THREE of the following are considered in detail in IFR...; Question 34: A company is planning a share repurchase programme with the ...; Question 35: Company A is planning to acquire Company B by means of a cas...; Question 36: An entity prepares financial statements to 30 June. During t...; Question 37: A venture capitalist invests in a company by means of buying...; Question 38: A company has: * A price/earnings (P/E) ratio of 10. * Earni...; Question 39: A company plans to acquire new machinery. It has two financi...; Question 40: PYP is a listed courier company. It is looking to raise new ...; Question 41: Company M is a listed company in a highly technical service ...; Question 42: A company is funded by: * $40 million of debt (market value)...; Question 43: Company WWW is considering making a takeover bid for Company...; Question 44: A company based in Country D, whose currency is the D$, has ...; Question 45: Company HJK is planning to bid for listed company BNM Financ...; Question 46: The financial assistant of a geared company has prepared the...; Question 47: M is an accountant who wishes to take out a forward rate agr...; Question 48: Company A plans to diversify by a cash acquisition of Compan...; Question 49: A large, listed company in the food and household goods indu...; Question 50: An unlisted company has the following data: (Exhibit) A list...; Question 51: A company is based in Country Y whose functional currency is...; Question 52: A national rail operating company has made an offer to acqui...; Question 53: A company is considering hedging the interest rate risk on a...; Question 54: VVV has a floating rate loan that it wishes to replace with ...; Question 55: A company's gearing is well below its optimal level and ther...; Question 56: Which of the following explains an aim of integrated reporti...; Question 57: Company C is a listed company. It is currently considering t...; Question 58: A private company was formed five years ago and is currently...; Question 59: The Senior Management Team of ABC, an owner-managed, capital...; Question 60: Company M plans to bid for Company J. Company M has 20 milli...; Question 61: A large, listed company is planning a major project that sho...; Question 62: Company AEE has a 10 year 6% corporate bond in issue which h...; Question 63: Company A plans to acquire Company B in a 1-for-1 share exch...; Question 64: Company A operates in country A and uses currency AS. It is ...; Question 65: At the last financial year end, 31 December 20X1, a company ...; Question 66: Company A is unlisted and all-equity financed. It is trying ...; Question 67: Delta and Kappa both wish to borrow $50m. Delta can borrow a...; Question 68: A venture capitalist is most likely to take which THREE of t...; Question 69: A company's dividend policy is to pay out 50% of its earning...; Question 70: A profitable company wishes to dispose of a loss-making divi...; Question 71: A Venture Capital Fund currently holds a significant shareho...; Question 72: Which of the following statements about IFRS 7 Financial Ins...; Question 73: A company's statement of financial position includes non-cur...; Question 74: A company based in Country D, whose currency is the D$, has ...; Question 75: A consultancy company is dependent for profits and growth on...; Question 76: A company has convertible bonds in issue. The following debt...; Question 77: A listed company is planning a share repurchase. The followi...; Question 78: When valuing an unlisted company, a P/E ratio for a similar ...; Question 79: Company C has received an unwelcome takeover bid from Compan...; Question 80: A company intends to sell one of its business units. Company...; Question 81: KKL is a listed sports clothing company with three separate ...; Question 82: Company T has 1,000 million shares in issue with a current s...; Question 83: Where a company acquires another company, which THREE of the...; Question 84: Select the category of risk for each of the descriptions bel...; Question 85: Company P is a large unlisted food-processing company. Its c...; Question 86: On 31 October 20X3: * A company expected to agree a foreign ...; Question 87: A company's Board of Directors is assessing the likely impac...; Question 88: A company's annual dividend has grown steadily at an annual ...; Question 89: The shares of a company in a high technology industry have b...; Question 90: The International Integrated Reporting Council (IIRC) was fo...; Question 91: Company ABE is an unlisted company that has been trading for...; Question 92: A company generates and distributes electricity and gas to h...; Question 93: Company W is a manufacturing company with three divisions, a...; Question 94: An unlisted company is attempting to value its equity using ...; Question 95: A large, quoted company that is all-equity financed is plann...; Question 96: A manufacturing company based in Country R. where the curren...; Question 97: A company has a cash surplus which it wishes to distribute t...; Question 98: A company is currently all-equity financed. The directors ar...; Question 99: It is now 1 January 20X0. Company V, a private equity compan...; Question 100: A company has 6 million shares in issue. Each share has a ma...; Question 101: Listed Company A has prepared a valuation of an unlisted com...; Question 102: A company is considering either exporting its product direct...; Question 103: A company's directors plan to increase gearing to come in li...; Question 104: A listed company is financed by debt and equity. If it incre...; Question 105: Listed company R is in the process of making a cash offer fo...; Question 106: Company Z wishes to borrow $50 million for 10 years at a fix...; Question 107: The following information relates to Company ZZA's current c...; Question 108: A company s about to announce a new project that has a posit...; Question 109: A national airline has made an offer to acquire a smaller ai...; Question 110: Which of the following would be a reason for a company to ad...; Question 111: Company S is planning to acquire Company T. The shareholders...; Question 112: A company has two divisions. A is the manufacturing division...; Question 113: Which of the following best explains why the interest rate p...; Question 114: A company is based in Country Y whose functional currency is...; Question 115: Under traditional theory, an increase in a company's WACC wo...; Question 116: Company A operates in country A with the AS as its functiona...; Question 117: Company RRR is a well-established, unlisted, road freight co...; Question 118: A listed company has suffered a period of falling revenues a...; Question 119: Company R is a major food retailer. It wishes to acquire Com...; Question 120: Company A plans to acquire Company B. Both firms operate as ...; Question 121: Which THREE of the following statements about stock market l...; Question 122: A company wishes to raise new finance using a rights issue t...; Question 123: A company based in Country A with the A$ as its functional c...; Question 124: Company ABD and Company BCD operate in the same industry and...; Question 125: Company A, a listed company, plans to acquire Company T, whi...; Question 126: An unlisted software development company has recently report...; Question 127: A company enters into a floating rate borrowing with interes...; Question 128: X exports goods to customers in a number of small countries ...; Question 129: Which THREE of the following long term changes are most like...; Question 130: On 31 October 20X3: * A company expected to agree a foreign ...; Question 131: Company Y plans to diversify into an activity where Company ...; Question 132: XCV can borrow at either 9.5% fixed or the risk-free rate pl...; Question 133: Which TIIRCC of the following are most likely to reduce the ...; Question 134: Company A is proposing a rights issue to finance a new inves...; Question 135: A company plans to raise S15 million to finance an expansion...; Question 136: PPA owns $500,000 of shares in Company ABB. Company ABB has ...; Question 137: STU has relatively few tangible assets and is dependent for ...; Question 138: ADC is planning to acquire DEF in order to benefit from the ...; Question 139: The Board of Directors of a listed company have decided that...; Question 140: A listed entertainment and media company produces and distri...; Question 141: A company is wholly equity funded. It has the following rele...; Question 142: Company B is an all equity financed company with a cost of e...; Question 143: Company Z has identified four potential acquisition targets:...; Question 144: A new company was set up two years ago using the personal fi...; Question 145: The Board of Directors of Company T is considering a rights ...; Question 146: Company XXY operates in country X with the X$ as its currenc...; Question 147: An unlisted company wishes to obtain an estimated value for ...; Question 148: Company A is a large well-established listed entertainment c...; Question 149: A company's gearing (measured as debt/(debt + equity)) is cu...; Question 150: An unlisted software development business is to be sold by i...; Question 151: Company U has made a bid for the entire share capital of Com...; Question 152: PTT has a number of subsidiary companies around the world, i...; Question 153: Listed company R is in the process of making a cash offer fo...; Question 154: Company M is a geared company whose equity has a market valu...; Question 155: Company E is a listed company. Its directors are valuing a s...; Question 156: Company A is planning to acquire Company B at a price of $ 6...; Question 157: A company is owned by its five directors who want to sell th...; Question 158: Company T is a listed company in the retail sector. Its curr...; Question 159: The long-term prospects for inflation in the UK and the USA ...; Question 160: Company ABC's management has noticed that Company BCD has qu...; Question 161: TTT pic is a listed company. The following information is re...; Question 162: A company plans to raise $12 million to finance an expansion...; Question 163: A large, listed company in the food and household goods indu...; Question 164: A listed company is planning a share repurchase. The followi...; Question 165: A company raised fixed rate bank finance together with an in...; Question 166: A listed publishing company owns a subsidiary company whose ...; Question 167: An aerospace company is planning to diversify into car manuf...; Question 168: XYZ is a multi-national group with subsidiary AA in Country ...; Question 169: Company ACC. an ungeared car manufacturer has launched a tak...; Question 170: A company is considering the issue of a convertible bond com...; Question 171: A company plans to raise $12 million to finance an expansion...; Question 172: RST wishes to raise at least $40 million of new equity by is...; Question 173: The Treasurer of Z intends to use interest rate options to s...; Question 174: SUP is a large supermarket chain. It produces many 'own bran...; Question 175: Company J plans to acquire Company K, an unlisted company wh...; Question 176: Company A plans to acquire Company B, an unlisted company wh...; Question 177: The directors of a multinational group have decided to sell ...; Question 178: A company has: * 10 million $1 ordinary shares in issue * A ...; Question 179: A company is planning to issue a 5 year $100 million bond at...; Question 180: Company M is a listed company in a highly technical service ...; Question 181: A private company manufactures goods for export, the goods a...; Question 182: On 1 January 20X1, a company had: * Cost of equity of 10 0%....

Question 26/182

LEAVE A REPLY

Download PDF File