1. What does it mean to be net long? What movement in the foreign exchange rate will result in a loss? What does it mean to be net short? What movement in the foreign exchange rate will result in a loss?
2. Firm A and Firm B have debt-total asset ratios of 43 percent and 33 percent and returns on total assers of 9 percent and 15 percent, respectively. What is the return on equity for Firm A and Firm B?
3. Does the financial manager have a greater responsibility or a lesser responsibility for maintaining ethical corporate governance? Why or why not? What is or will be your approach to ethical corporate governance now or in the future?