Regarding international finance, select the correct alternative:单项选择题

A

A MNC is engaged in producing and selling goods or services in more than one country.

B

The spot exchange rate is for trades that will happen within a month from today.

C

The only motivation for MNCs to expand is the minimization of production costs.

D

The spot exchange rate is determined only by the supply of that currency in the global market.

登录即可查看完整答案

我们收录了全球超50000道真实原题与详细解析,现在登录,立即获得答案。

类似问题

Question23 You work for an Australian firm that is considering a foreign investment in the U.S. The investment yields expected after-tax US dollar (USD) cash flows (in millions) as follows:Year 0: USD -100 (million)Year 1: USD 70 (million)Year 2: USD 70 (million) Expected inflation is 10% in Australia and 21% in the U.S. for the next 2 years. Assume that the international parity conditions hold. Required returns for projects in this risk class are 10% in Australia and 15% in the U.S. The spot exchange rate is AUD1.815/USD. Calculate the parent's perspective project NPV in AUD. Answer it in AUD, unit of million, keep two decimal points, without comma, e.g., 12345.67 or -123.40. Answer: [input]. Maximum marks: 1 Flag question undefined

Assume that Baps Corp. is considering the establishment of a subsidiary in Norway. The initial investment required by the parent is $5 million. If the project is undertaken, Baps would terminate the project after four years. Baps's cost of capital is 15 percent, and the project has the same risk as Baps's existing projects. All cash flows generated from the project will be remitted to the parent at the end of each year. The withholding tax rate in Norway is 10%. Listed below are the estimated cash flows the Norwegian subsidiary will generate over the project's lifetime in Norwegian kroner (NOK): Year 1 Year 2 Year 3 Year 4 NOK 10,000,000 NOK15,000,000 NOK17,000,000 NOK20,000,000 The current exchange rate of the Norwegian kroner is $.135. Baps's exchange rate forecasts for the Norwegian kroner over the project's lifetime are listed below: Year 1 Year 2 Year 3 Year 4 $.13 $.14 $.12 $.15 Assume that there is NOK10,000,000 salvage value. What is the before-tax cash flow to the parent company in the fourth year? (Assume there is no capital gain tax.)

Assume that Baps Corp. is considering the establishment of a subsidiary in Norway. The initial investment required by the parent is $5 million. If the project is undertaken, Baps would terminate the project after four years. Baps's cost of capital is 15 percent, and the project has the same risk as Baps's existing projects. All cash flows generated from the project will be remitted to the parent at the end of each year. The withholding tax rate in Norway is 10%. Listed below are the estimated cash flows the Norwegian subsidiary will generate over the project's lifetime in Norwegian kroner (NOK): Year 1 Year 2 Year 3 Year 4 NOK 10,000,000 NOK15,000,000 NOK17,000,000 NOK20,000,000 The current exchange rate of the Norwegian kroner is $.135. Baps's exchange rate forecasts for the Norwegian kroner over the project's lifetime are listed below: Year 1 Year 2 Year 3 Year 4 $.13 $.14 $.12 $.15 What is the after-tax cash flow to the parent company in the first year?

The __________ states that for any two countries, the spot exchange rate should change in an equal amount but in the opposite direction to the difference in nominal interest rates between the two countries.

更多留学生实用工具

加入我们,立即解锁 海量真题独家解析,让复习快人一步!