Question

Which of the following is not true regarding translation exposure? a. Since earnings can affect stock prices, many MNCs are c

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Option 'C' is correct

Translation exposure will not effect cash flows, even if the earnings are remitted to the parent. Translation exposure means the exposure of the MNC's consolidated financial statements to exchange rate fluctuations

Add a comment
Know the answer?
Add Answer to:
Which of the following is not true regarding translation exposure? a. Since earnings can affect stock...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Which of the following is not true? a. Economic exposure is the degree to which a...

    Which of the following is not true? a. Economic exposure is the degree to which a firm's present value of future cash flows can be influenced by exchange rate fluctuations. b. Translation exposure is the exposure of an MNC's consolidated financial statements to exchange rate fluctuations. c. Economic exposure includes transaction exposure d. Transaction exposure is the degree to which the value of future cash transactions can be affected by exchange rate fluctuations. e. All of the these choices are...

  • Introduction Decision making in finance is rarely black and white and one decision can be appropriate...

    Introduction Decision making in finance is rarely black and white and one decision can be appropriate for one situation and not appropriate for another. Point and counter-point discussions should highlight this as well as expand upon the ability to support a decision that may not be supported by others in the same department. Initial Post Instructions Consider the following point and counter-point arguments then use the Internet to learn more about the issue. Which argument to you support? Explain why...

  • Check My Work Which of the following is not true? a. Economic exposure is the degree...

    Check My Work Which of the following is not true? a. Economic exposure is the degree to which a firm's present value of future cash flows can be influenced by exchange rate fluctuations. o b. Translation exposure is the exposure of an MNC's consolidated financial statements to exchange rate fluctuations. X O c. Economic exposure includes transaction exposure. O d. Transaction exposure is the degree to which the value of future cash transactions can be affected by exchange rate fluctuations....

  • Which of the following is true regarding the statement of cash flows and IFRS? Cash and...

    Which of the following is true regarding the statement of cash flows and IFRS? Cash and cash equivalents are defined differently under IFRS than under GAAP. Under IFRS most companies choose to use the direct method of reporting cash flows from operating activities. Companies preparing a complete set of financial statements under IFRS may exclude the statement of cash flows if the cash flow activity is reported in the notes to the financial statements. Under IFRS noncash investing and financing...

  • 1. Which of the following is true regarding the Comprehensive Annual Financial Report? a.The basic financial...

    1. Which of the following is true regarding the Comprehensive Annual Financial Report? a.The basic financial statements consist of the government-wide, the governmental fund, the proprietary fund, and the fiduciary fund financial statements (and the notes to the financial statements). b.The government-wide financial statements include the Statement of Net Position, the Statement of Activities, and the Statement of Cash Flows. c. Both are true d. Neither is true 2. Which of the following is true regarding the proprietary fund financial...

  • Which of the following is true regarding cross-sectional studies? a Cross-sectional studies can only be descriptive...

    Which of the following is true regarding cross-sectional studies? a Cross-sectional studies can only be descriptive and cannot be used to test a hypothesis since information on the exposure and disease are collected simultaneousl b Cross-sectional studies can provide an estimate of incidence when they are conducted on a national level and are representative of current demographic groups. c Cross-sectional studies are superior to experimental studies because they are more representative of the population d None of the above statements...

  • Which of the following statements is true? Taxes on dividend income are paid when the stock...

    Which of the following statements is true? Taxes on dividend income are paid when the stock is sold. Taxes on dividend income are paid in the year that they are received As a result, the U.S. tax code encourages many individual investors to prefer to receive Some researchers and analysts have noticed a trend in which firms that increase their dividends see an increase in their stock price. The theory of explains this phenomenon In some cases, analysts notice that...

  • Which of the following statements are true regarding dividends?

    Which of the following statements are true regarding dividends? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.) A stock dividend increases the number of outstanding shares. A large stock dividend is a distribution of more than 25% of previously outstanding shares. A company with a retained earnings deficit is never...

  • A,.Which of the following shows how acquiring cash from the issue of common stock will affect...

    A,.Which of the following shows how acquiring cash from the issue of common stock will affect a company’s financial statements? Balance sheet Income Statement Statement of Cash Flows Assets = Liabilities + Equity Rev. − Exp. = Net Inc. A. + = NA + + NA − NA = NA NA B. + = NA + + NA − NA = NA + IA C. + = NA + + NA − NA = NA + FA D. + =...

  • 1. Which of the following statements regarding a bu wing statements regarding a business combination is...

    1. Which of the following statements regarding a bu wing statements regarding a business combination is wrong? B. Costs of registering equity se Osts of registering equity securities to be issued by the acquiring company are not expensed registering equity securities to be issued by the acquiring company do not affect the amount of goodwill to be recorded by the acquiring will to be recorded by the acquiring company. costs related to the business combination are expensed when incurred. company...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT