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.
Homework Answers
The discount rate decreases.: The value will rise as the cash flow will be discounted at lower rate.
The foreign country currency appreciates. This will result in increased cash flow in the domestic currency to the firm
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Which of these factors would increase the value of a
multinational corporation? Check all that apply:...
Problem 8 Part 1 Attempt 1/2 for 10 pts. Which of these factors would increase the...
Problem 8 Part 1 Attempt 1/2 for 10 pts. Which of these factors would increase the value of a multinational corporation? Check all that apply: The foreign country currency appreciates A foreign currency cash flow decreases. The discount rate increases. The discount rate decreases. The foreign country currency depreciates. Submit
Which factors increase international portfolio investments into a country? Check all that apply: Expected appreciation of...
Which factors increase international portfolio investments into a country? Check all that apply: Expected appreciation of the foreign currency High potential economic growth High interest rates High tax rates on dividends and interest
In accordance with the valuation formula of a U.S. based multinational corporation, , which of the...
In accordance with the valuation formula of a U.S. based
multinational corporation, ,
which of the following is correct for JJ
Company (a U.S. based multinational corporation)? JJ Company has a
subsidiary established in China.
Question options:
If the economic condition in China weakens, the value of JJ
company increases.
If the required rate of return by investors, k, increases, the
value of JJ company increases.
If the U.S. dollar appreciates against Chinese Yuan (i.e.,
Chinese Yuan appreciates against the...
Which of the following events would lead to an increase in direct foreign investment? Check all...
Which of the following events would lead to an increase in direct foreign investment? Check all that apply: The economy is bound to grow quickly. The country raises its corporate tax rates. The local currency is expected to depreciate over the next few years. The country decides to privatize some state-owned enterprises. The government removes restrictions against DFI.
1. Multinational enterprises Which of the following are common characteristics of multinational enterprises (MNES)? Check all...
1. Multinational enterprises Which of the following are common characteristics of multinational enterprises (MNES)? Check all that apply. Low ratio of foreign sales to total sales Foreign sales that represent a high proportion of total sales Acquisitions in nonrelated markets Facilitated tehnology transfer by exerting competitive pressures on foreign firms Creation of subsidiaries that are independent production units Low capital productivity Complete the following table by indicating whether each assumption is used by multinational enterprise (MNE) analysis, conventional trade theory,...
(16) When interest rates in the U.S. increase, the supply of dollars ________ and the demand...
(16)
When interest rates in the U.S. increase, the supply of dollars
________ and the demand for dollars ________.
decreases; increases
increases; decreases
increases; increases
decreases; decreases
(17)
The World Trade Organization
was established as part of the
Bretton Woods agreement.
requires members to charge the
same prices on goods traded internationally.
requires members to reduce
tariffs and eliminate non-tariff barriers.
is made up of business leaders
from all over the world.
(18)
If...
5. Interest rate parity Aa Aa The rise of globalization is due to the many companies that have become multinational cor...
5. Interest rate parity Aa Aa The rise of globalization is due to the many companies that have become multinational corporations for various reasons-for example, to access better technology, to enter new markets, to obtain more raw materials, to find funding resources, to minimize production costs, or to diversify business risk. This multimarket presence exposes companies to different kinds of risk as well-for example, political risk and exchange rate risk. Several factors affect the exchange rate of a currency with...
What is likely to happen if U.S. inflation increases by more than British inflation? Check all...
What is likely to happen if U.S. inflation increases by more than British inflation? Check all that apply: The supply of pounds decreases. The demand for pounds decreases. The exchange rate movement is unclear. The demand for pounds increases. The dollar appreciates. The supply of pounds increases. The dollar depreciates.
Following a report of additional economic growth in country A (the domestic currency), the balance of...
Following a report of additional economic growth in country A (the domestic currency), the balance of payments re-equilibration occurs in which order? - The DC depreciates - The fx re-equilibrates to new level - Foreign agents decrease their demand for the domestic currency (DC) to invest - Foreign agents increase their interest in domestic investment (DI) Foreign agents increase their demand for the domestic currency (DC) to invest - The DC appreciates - The foreign interest in DI decreases -...
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...
Problem 8 Part 1 Attempt 1/2 for 10 pts. Which of these factors would increase the value of a multinational corporation? Check all that apply: The foreign country currency appreciates A foreign currency cash flow decreases. The discount rate increases. The discount rate decreases. The foreign country currency depreciates. Submit
In accordance with the valuation formula of a U.S. based
multinational corporation, ,
which of the following is correct for JJ
Company (a U.S. based multinational corporation)? JJ Company has a
subsidiary established in China.
Question options:
If the economic condition in China weakens, the value of JJ
company increases.
If the required rate of return by investors, k, increases, the
value of JJ company increases.
If the U.S. dollar appreciates against Chinese Yuan (i.e.,
Chinese Yuan appreciates against the...
1. Multinational enterprises Which of the following are common characteristics of multinational enterprises (MNES)? Check all that apply. Low ratio of foreign sales to total sales Foreign sales that represent a high proportion of total sales Acquisitions in nonrelated markets Facilitated tehnology transfer by exerting competitive pressures on foreign firms Creation of subsidiaries that are independent production units Low capital productivity Complete the following table by indicating whether each assumption is used by multinational enterprise (MNE) analysis, conventional trade theory,...
(16)
When interest rates in the U.S. increase, the supply of dollars
________ and the demand for dollars ________.
decreases; increases
increases; decreases
increases; increases
decreases; decreases
(17)
The World Trade Organization
was established as part of the
Bretton Woods agreement.
requires members to charge the
same prices on goods traded internationally.
requires members to reduce
tariffs and eliminate non-tariff barriers.
is made up of business leaders
from all over the world.
(18)
If...
5. Interest rate parity Aa Aa The rise of globalization is due to the many companies that have become multinational corporations for various reasons-for example, to access better technology, to enter new markets, to obtain more raw materials, to find funding resources, to minimize production costs, or to diversify business risk. This multimarket presence exposes companies to different kinds of risk as well-for example, political risk and exchange rate risk. Several factors affect the exchange rate of a currency with...
Following a report of additional economic growth in country A (the domestic currency), the balance of payments re-equilibration occurs in which order? - The DC depreciates - The fx re-equilibrates to new level - Foreign agents decrease their demand for the domestic currency (DC) to invest - Foreign agents increase their interest in domestic investment (DI) Foreign agents increase their demand for the domestic currency (DC) to invest - The DC appreciates - The foreign interest in DI decreases -...
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...
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