When economic conditions of two countries are _______, then a firm would _______ its risk by...
When economic conditions of two countries are _______, then a firm would _______ its risk by operating in both countries instead of concentrating just in one.
|
highly correlated; reduce |
|
|
not highly correlated; not reduce |
|
|
not highly correlated; reduce |
|
|
none of these |
Homework Answers
Ans not highly correlated; reduce
When economic conditions of two countries are not highly correlated, then a firm would reduce its risk by operating in both countries instead of concentrating just in one.
Add Answer to:
When economic conditions of two countries are _______, then a
firm would _______ its risk by...
help these are multiple choice 20. When a firm employs no debt: a. It has a...
help these are multiple choice
20. When a firm employs no debt: a. It has a financial leverage of one b. It has financial leverage of zero C. Its operating leverage is equal to its financial leverage d. It will not be prifitable e. None of the above. 21. Under normal conditions, with 60% probability, financing Plan A produces a return $35,000 higher than Plan B; under tight money conditions, with 45% probability, Plan A produces a return of $40,000...
When two explanatory variables are highly correlated, should you remove one of the correlated explanatory variables...
When two explanatory variables are highly correlated, should you remove one of the correlated explanatory variables to reduce the multicollinearity problem. A. Yes, it will reduce the standard errors on the coefficients and increase the t statistics. B. No, it will not affect the t statistics on the coefficients. C. No, it will cause the coefficient on the remaining variable to be biased. D. Yes, it will improve the fit of the regression model.
Consider two countries, A and B. Assume that both countries have identical physical endowments of iron...
Consider two countries, A and B. Assume that both countries have identical physical endowments of iron ore. In country A any profits made from mining the iron ore are subject to confiscation by the government. While in country B. there is no such risk. How does the risk of expropriation affect the economic endowments of the two nations? Which nation would you think would be richer? Why? Given your answer to the above, why is there widespread political support for...
Zen Manufacturing Inc. is a multinational firm with sales and manufacturing units in 15 countries. One...
Zen Manufacturing Inc. is a multinational firm with sales and
manufacturing units in 15 countries. One of its manufacturing
units, in country X, sells its product to a retail unit in country
Y for $320,000. The unit in country X has manufacturing costs of
$162,500 for these products. The retail unit in country Y sells the
product to final customers for $462,500. Zen is considering
adjusting its transfer prices to reduce overall corporate tax
liability.
Required:
1. Assume that both...
Zen Manufacturing Inc. is a multinational firm with sales and manufacturing units in 15 countries. One...
Zen Manufacturing Inc. is a multinational firm with sales and manufacturing units in 15 countries. One of its manufacturing units, in country X, sells its product to a retail unit in country Y for $340,000. The unit in country X has manufacturing costs of $175,000 for these products. The retail unit in country Y sells the product to final customers for $475,000. Zen is considering adjusting its transfer prices to reduce overall corporate tax liability. Required: 1. Assume that both...
Suppose that there are two independent economic factors, F1 and F2. The risk-free rate is 5%, and...
Suppose that there are two independent economic factors,
F1 and F2. The risk-free
rate is 5%, and all stocks have independent firm-specific
components with a standard deviation of 44%. Portfolios A
and B are both well-diversified with the following
properties:
Suppose that there are two independent economic factors, F1 and F2. The risk-free rate is 5%, and all stocks have independent firm- specific components with a standard deviation of 44%. Portfolios A and B are both well-diversified with the following...
Suppose that there are two independent economic factors, F1 and F2. The risk-free rate is 3%,...
Suppose that there are two independent
economic factors, F1 and F2. The risk-free rate is 3%, and all
stocks have independent firm-specific components with a standard
deviation of 52%. Portfolios A and B are both well-diversified with
the following properties: Portfolio Beta on F1 Beta on F2 Expected
Return A 1.4 1.8 30 % B 2.4 –0.18 27 % What is the expected
return-beta relationship in this economy? Calculate the risk-free
rate, rf, and the factor risk premiums, RP1 and...
Zen Manufacturing Inc. is a multinational firm with sales and manufacturing units in 15 countries. One...
Zen Manufacturing Inc. is a multinational firm with sales and manufacturing units in 15 countries. One of its manufacturing units, in country X, sells its product to a retail unit in country Y for $352,000. The unit in country X has manufacturing costs of $182,500 for these products. The retail unit in country Y sells the product to final customers for $482,500. Zen is considering adjusting its transfer prices to reduce overall corporate tax liability. Required: 1. Assume that both...
6. Within-firm risk and beta risk Understanding risks that affect projects and the impact of risk...
6. Within-firm risk and beta risk Understanding risks that affect projects and the impact of risk consideration Yatta Net International has manufacturing, distribution, retail, and consulting divisions. Projects undertaken by the manufacturing and distribution divisions tend to be low-risk projects, because these divisions are well established and have predictable demand. The company started its retail and consulting divisions within the last year, and it is unknown if these divisions will be profitable. The company knew that opening these new divisions...
6. Within-firm risk and beta risk Understanding risks that affect projects and the impact of risk...
6. Within-firm risk and beta risk Understanding risks that affect projects and the impact of risk consideration Yatta Net International has manufacturing, distribution, retail, and consulting divisions. Projects undertaken by the manufacturing and distribution divisions tend to be low-risk projects, because these divisions are well established and have predictable demand. The company started its retail and consulting divisions within the last year, and it is unknown if these divisions will be profitable. The company knew that opening these new divisions...
help these are multiple choice
20. When a firm employs no debt: a. It has a financial leverage of one b. It has financial leverage of zero C. Its operating leverage is equal to its financial leverage d. It will not be prifitable e. None of the above. 21. Under normal conditions, with 60% probability, financing Plan A produces a return $35,000 higher than Plan B; under tight money conditions, with 45% probability, Plan A produces a return of $40,000...
Consider two countries, A and B. Assume that both countries have identical physical endowments of iron ore. In country A any profits made from mining the iron ore are subject to confiscation by the government. While in country B. there is no such risk. How does the risk of expropriation affect the economic endowments of the two nations? Which nation would you think would be richer? Why? Given your answer to the above, why is there widespread political support for...
Zen Manufacturing Inc. is a multinational firm with sales and
manufacturing units in 15 countries. One of its manufacturing
units, in country X, sells its product to a retail unit in country
Y for $320,000. The unit in country X has manufacturing costs of
$162,500 for these products. The retail unit in country Y sells the
product to final customers for $462,500. Zen is considering
adjusting its transfer prices to reduce overall corporate tax
liability.
Required:
1. Assume that both...
Zen Manufacturing Inc. is a multinational firm with sales and manufacturing units in 15 countries. One of its manufacturing units, in country X, sells its product to a retail unit in country Y for $340,000. The unit in country X has manufacturing costs of $175,000 for these products. The retail unit in country Y sells the product to final customers for $475,000. Zen is considering adjusting its transfer prices to reduce overall corporate tax liability. Required: 1. Assume that both...
Suppose that there are two independent economic factors,
F1 and F2. The risk-free
rate is 5%, and all stocks have independent firm-specific
components with a standard deviation of 44%. Portfolios A
and B are both well-diversified with the following
properties:
Suppose that there are two independent economic factors, F1 and F2. The risk-free rate is 5%, and all stocks have independent firm- specific components with a standard deviation of 44%. Portfolios A and B are both well-diversified with the following...
Suppose that there are two independent
economic factors, F1 and F2. The risk-free rate is 3%, and all
stocks have independent firm-specific components with a standard
deviation of 52%. Portfolios A and B are both well-diversified with
the following properties: Portfolio Beta on F1 Beta on F2 Expected
Return A 1.4 1.8 30 % B 2.4 –0.18 27 % What is the expected
return-beta relationship in this economy? Calculate the risk-free
rate, rf, and the factor risk premiums, RP1 and...
6. Within-firm risk and beta risk Understanding risks that affect projects and the impact of risk consideration Yatta Net International has manufacturing, distribution, retail, and consulting divisions. Projects undertaken by the manufacturing and distribution divisions tend to be low-risk projects, because these divisions are well established and have predictable demand. The company started its retail and consulting divisions within the last year, and it is unknown if these divisions will be profitable. The company knew that opening these new divisions...
6. Within-firm risk and beta risk Understanding risks that affect projects and the impact of risk consideration Yatta Net International has manufacturing, distribution, retail, and consulting divisions. Projects undertaken by the manufacturing and distribution divisions tend to be low-risk projects, because these divisions are well established and have predictable demand. The company started its retail and consulting divisions within the last year, and it is unknown if these divisions will be profitable. The company knew that opening these new divisions...
Most questions answered within 3 hours.
-
Estimate the amount of Canadians who are vegans accurate to
within 2% with a 91% confidence...
asked 2 minutes ago -
A local greenhouse sells coffee-tree saplings. They price their
saplings based on the height of the...
asked 2 minutes ago -
As two cars move toward each other, the speedometer of one car
reads 57.9 km/h while...
asked 3 minutes ago -
A factory worker pushes a 30.0 kg crate a distance of 5.7 m
along a level...
asked 7 minutes ago -
In one statistics class, students were given one homework
assignment. The professor asked students to find...
asked 26 minutes ago -
(a) Calculate the force needed to bring a 1050 kg car to rest
from a speed...
asked 25 minutes ago -
A box contains 14 large marbles and 19 small marbles. Each
marble is either green or...
asked 42 minutes ago -
The results of a one-sample t test were t (18) = 2.11,
p < 0.05. In...
asked 52 minutes ago -
What kind of share-based compensation does the company have for
Verizon? What was compensation expense for...
asked 1 hour ago -
Place each of the following transactions in one of the four
components of expenditure: (remember it...
asked 1 hour ago -
Find the optimal binary symbol code using the Huffman coding
algorithm. Draw the Huffman tree (show...
asked 1 hour ago -
Using Rhodes Corporation’s financial statements (shown after
part f), answer the following questions.
a. What is...
asked 1 hour ago