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Multinational firms now operate and trade in different markets and different currencies. Which risk-free rate should...

Multinational firms now operate and trade in different markets and different currencies. Which risk-free rate should you use to value a company? Provide an example to help support your answer.

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Answer #1

Changes in currency values and exchange rates will influence the multi national companies operations and their profitability.

Here, Exchange risk will be more in this scenario. Trades will operates in different market with different currencies because if the profits are high in one country but the currency of that country will be less,Vice versa.

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