Homework Answers
The following factors would increase the value of a multinational corporation:
1)The discount rate decreases. - Since decrease in discount rate will increase the present value of Cashflows.
2)The foreign country currency depreciates. - Since if foreign country currency depreciates our currency will appreciate and hence our investment value will also increase.
.
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Problem 8 Part 1 Attempt 1/2 for 10 pts. Which of these factors would increase the...
Which of these factors would increase the value of a multinational corporation? Check all that apply:...
Which of these factors would increase the value of a multinational corporation? Check all that apply: A foreign currency cash flow decreases. The foreign country currency depreciates. The discount rate decreases. The discount rate increases. The foreign country currency appreciates.
Problem 3 Part 1 Attempt 2/2 for 10 pts. Why is the agency problem more pronounced...
Problem 3 Part 1 Attempt 2/2 for 10 pts. Why is the agency problem more pronounced for multinational corporations? Check all that apply: Managers raised in different cultures may have different goals and values. Monitoring managers in foreign countries is more difficult. MNCs are often larger than purely domestic companies. There are no international laws to prevent agency problems. Submit
Problem 17 | Attempt 2/8 for 8 pts. Part 1 Which statements are CORRECT? Check all...
Problem 17 | Attempt 2/8 for 8 pts. Part 1 Which statements are CORRECT? Check all that apply: Stocks that don't pay dividend, such as, Amazon, Google, Facebook, etc., still have huge value. This contradicts DDM model OGE recently announced the news to cut future dividend. The plan hardly affects its current stock price Shareholder's total return comes from two sources only: dividend and capital gain ONYSE is a primary market In DDM, the stock price is called ex-dividend price...
Several factors affect the exchange rate of a currency with another currency. Which of the following...
Several factors affect the exchange rate of a currency with another currency. Which of the following statements are true about the factors that have an impact on exchange rates? Check all that apply. When a government limits imports and restricts foreign exchange transactions, its currency's value tends to increase relative to other currencies. An increase in inflation tends to increase the currency's value with respect to other currencies with lower inflation. If a government intends to prevent its currency's value...
1. In regards to the perspective of a U.S. investor, which of the below statements is...
1. In regards to the perspective of a U.S. investor, which of the below statements is FALSE? Group of answer choices a.The cash flows of assets denominated in a foreign currency expose the investor to uncertainty as to the actual level of the cash flow measured in that foreign currency. b.The actual number of U.S. dollars that the investor eventually gets depends on the exchange rate between the U.S. dollar and the foreign currency at the time the nondollar cash...
Problem 8 44 » Intro The annual interest rate is 4%. B Attempt 1/10 for 8...
Problem 8 44 » Intro The annual interest rate is 4%. B Attempt 1/10 for 8 pts. Part 1 What is the present value (PV) of $1,000 that you'll receive in 14 years? Submit ■日 Attempt 1 /10 for 8 pts. Part 2 If you invest the amount found in part 1 now, how much will you have after 14 years? No decimals Submit Part 3 If you invest $577.48 now, how much will you have after 7 years? No...
(1) If the world price is above the domestic equilibrium price, the domestic country is likely...
(1)
If the world price is above the domestic equilibrium price, the
domestic country is likely to ____________________ the good.
(2)
The difference between what an economy sells to and buys from
foreigners is _________________.
(3)
The idea that exchange rates and prices adjust to equalize the
cost of living across international boundaries is called
__________________________.
(4)
In the graph below, when the world price is $3, how many units
are...
Attempt: Checking all options is the wrong answer Problem 7 Part 1 | Attempt 2/4 for...
Attempt: Checking all options is the wrong answer
Problem 7 Part 1 | Attempt 2/4 for 8 pts. Which of the following statements are inconsistent with the efficient market hypothesis? Check all that apply: Stocks that outperform the index in March always underperform it in April. Stocks that outperform the index in March always outperform it in April. The average annual return on stocks is greater than zero. Half of fund managers are able to beat their relevant index each...
1 - Attempt 6/8 for 9 pts. Part 1 Costs of corporate financial distress include Check...
1 - Attempt 6/8 for 9 pts. Part 1 Costs of corporate financial distress include Check all that apply: loss of employees or suppliers legal and administrative expenses of bankruptcy lost sales due to customer distrust o customers defaulting on credit sales Try again Submit
Problem 3 Part 1 Attempt 2/2 for 10 pts. Why is the agency problem more pronounced for multinational corporations? Check all that apply: Managers raised in different cultures may have different goals and values. Monitoring managers in foreign countries is more difficult. MNCs are often larger than purely domestic companies. There are no international laws to prevent agency problems. Submit
Problem 17 | Attempt 2/8 for 8 pts. Part 1 Which statements are CORRECT? Check all that apply: Stocks that don't pay dividend, such as, Amazon, Google, Facebook, etc., still have huge value. This contradicts DDM model OGE recently announced the news to cut future dividend. The plan hardly affects its current stock price Shareholder's total return comes from two sources only: dividend and capital gain ONYSE is a primary market In DDM, the stock price is called ex-dividend price...
Several factors affect the exchange rate of a currency with another currency. Which of the following statements are true about the factors that have an impact on exchange rates? Check all that apply. When a government limits imports and restricts foreign exchange transactions, its currency's value tends to increase relative to other currencies. An increase in inflation tends to increase the currency's value with respect to other currencies with lower inflation. If a government intends to prevent its currency's value...
Problem 8 44 » Intro The annual interest rate is 4%. B Attempt 1/10 for 8 pts. Part 1 What is the present value (PV) of $1,000 that you'll receive in 14 years? Submit ■日 Attempt 1 /10 for 8 pts. Part 2 If you invest the amount found in part 1 now, how much will you have after 14 years? No decimals Submit Part 3 If you invest $577.48 now, how much will you have after 7 years? No...
(1)
If the world price is above the domestic equilibrium price, the
domestic country is likely to ____________________ the good.
(2)
The difference between what an economy sells to and buys from
foreigners is _________________.
(3)
The idea that exchange rates and prices adjust to equalize the
cost of living across international boundaries is called
__________________________.
(4)
In the graph below, when the world price is $3, how many units
are...
Attempt: Checking all options is the wrong answer
Problem 7 Part 1 | Attempt 2/4 for 8 pts. Which of the following statements are inconsistent with the efficient market hypothesis? Check all that apply: Stocks that outperform the index in March always underperform it in April. Stocks that outperform the index in March always outperform it in April. The average annual return on stocks is greater than zero. Half of fund managers are able to beat their relevant index each...
1 - Attempt 6/8 for 9 pts. Part 1 Costs of corporate financial distress include Check all that apply: loss of employees or suppliers legal and administrative expenses of bankruptcy lost sales due to customer distrust o customers defaulting on credit sales Try again Submit
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