Homework Answers
The not true statement is:-
b) Translation exposure is the exposure of an MNC's consolidated financial statements to exchange rate fluctuations.
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Which of the following is not true? a. Economic exposure is the degree to which a...
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 not true regarding translation exposure? a. Since earnings can affect stock...
Which of the following is not true regarding translation exposure? a. Since earnings can affect stock prices, many MNCs are concerned about translation exposure b. Since translation of financial statements does not affect an MNC's cash flows, some analysts suggest that translation exposure is not relevant. c. Translation exposure will not affect cash flows, even if earnings are remitted to the parent. d. All of these choices are true.
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...
Which method, current or temporal (translation versus remeasurement), or neither, are the following statements describing? a. A translation adjustment can affect consolidated net income b. Intang...
Which method, current or temporal (translation versus remeasurement), or neither, are the following statements describing? a. A translation adjustment can affect consolidated net income b. Intangible assets are translated at the historical exchange rate at the date of acquisition. c. A translation adjustment is created by the change in the relative value of a subsidiary's net assets caused by exchange rate fluctuations. d. A translation adjustment is created by the change in the relative value of a subsidiary's monetary assets...
14. Which statement is correct? a. AOCI is closed out against Retained Earnings. b. OCI is...
14. Which statement is correct? a. AOCI is closed out against Retained Earnings. b. OCI is closed out against Retained Earnings. c. OCI is closed out against AOCI d. AOCI is closed out against OCI 15. Which of the following statements is correct? a. AOCI is recorded on the parent's separate books b. AOCI is reported on the Consolidated Financial Statements e. Both a and b are correct d. Neither a norb is correct 16. Home Depot makes reference to...
Which of the following can normally be estimated with a high degree of accuracy in the...
Which of the following can normally be estimated with a high degree of accuracy in the valuation of privatized businesses in less developed countries? a. future exchange rate movements b. none of the options listed c. future cash flows d. the proper discount rate
Which of the following statements is true? A given present value will result in a higher...
Which of the following statements is true? A given present value will result in a higher future value if annual compounding is used rather than monthly compounding, Effective Annual Rate is greater than Annual Percentage Rate when annual compounding is used. ОО A perpetuity with the cash flow starting two years from now will have the same present value as a perpetuity with the same cash flow starting a year from now. A group of cash flows of the same...
Which of the following statements is true? None of the others A foreign exchange gain arising...
Which of the following statements is true? None of the others A foreign exchange gain arising from translating financial statements should always be recorded as revenue. The term ‘foreign currency transaction’ refers to a transaction denominated in a currency other than Australian dollars. The translation gain or loss on a foreign operation using the current rate method represents the effect of exchange rate movements on net assets.
1. According to the constant dividend growth model, which of the following is true A. the...
1. According to the constant dividend growth model, which of the following is true A. the dividend yield is the same as the capital gains yield. B. the constant growth rate is the same as the dividend yield. C. the capital gains yields is the same as the constant dividend growth rate. D. The price growth rate is the same as the dividend yield. 2. Which of the following is true about stock returns? A. the dividend yield must always...
Next Page Page 13 of 25 Question 13 (6 points) Which of the following statements about...
Next Page Page 13 of 25 Question 13 (6 points) Which of the following statements about discount rates is true? The longer the time period over which a transaction will generate cash flows, the higher the discount rate should be. The greater the amount of cash generated by a transaction, the higher the discount rate should be. The higher the degree of risk involved in a transaction, the higher the discount rate for future cash flows should be. The higher...
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 not true regarding translation exposure? a. Since earnings can affect stock prices, many MNCs are concerned about translation exposure b. Since translation of financial statements does not affect an MNC's cash flows, some analysts suggest that translation exposure is not relevant. c. Translation exposure will not affect cash flows, even if earnings are remitted to the parent. d. All of these choices are true.
14. Which statement is correct? a. AOCI is closed out against Retained Earnings. b. OCI is closed out against Retained Earnings. c. OCI is closed out against AOCI d. AOCI is closed out against OCI 15. Which of the following statements is correct? a. AOCI is recorded on the parent's separate books b. AOCI is reported on the Consolidated Financial Statements e. Both a and b are correct d. Neither a norb is correct 16. Home Depot makes reference to...
Which of the following statements is true? A given present value will result in a higher future value if annual compounding is used rather than monthly compounding, Effective Annual Rate is greater than Annual Percentage Rate when annual compounding is used. ОО A perpetuity with the cash flow starting two years from now will have the same present value as a perpetuity with the same cash flow starting a year from now. A group of cash flows of the same...
1. According to the constant dividend growth model, which of the following is true A. the dividend yield is the same as the capital gains yield. B. the constant growth rate is the same as the dividend yield. C. the capital gains yields is the same as the constant dividend growth rate. D. The price growth rate is the same as the dividend yield. 2. Which of the following is true about stock returns? A. the dividend yield must always...
Next Page Page 13 of 25 Question 13 (6 points) Which of the following statements about discount rates is true? The longer the time period over which a transaction will generate cash flows, the higher the discount rate should be. The greater the amount of cash generated by a transaction, the higher the discount rate should be. The higher the degree of risk involved in a transaction, the higher the discount rate for future cash flows should be. The higher...
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