Quiz Ch 17 – Requirements in Multinational Financial Management
Fundamentals of Financial Management, Concise
Brigham and Houston
09th Edition
In multinational financial management, it is necessary to…
In multinational financial management, it is necessary to…
True or false: While legal and economic disparities among countries are important factors, they do not generally present significant issues for most multinational corporations when it comes to coordinating and controlling worldwide operations and subsidiaries.
True or false: Exchange rate quotes encompass both direct and indirect quotations as part of their composition.
True or false: The cost of capital for a foreign project can differ from that of an equivalent domestic project due to potential variations in the level of risk associated with foreign projects.
True or false: To calculate a currency cross rate, one determines the exchange rate between two currencies by utilizing a third currency as the reference point.
True or false: In multinational financial management, financial analysts must take into account the impacts of shifting currency values.
True or false: Political risk, as it is rarely negotiable, CANNOT be accounted for in multinational corporate financial analysis.
True or false: A Eurodollar refers to a U.S. dollar that has been deposited in a bank located outside of the United States.
True or false: The prevailing system in the United States and most other major industrialized nations involves the use of floating exchange rates.
True or false: In assessing the risk of foreign investment, greater risk can stem from factors like exchange rate and political risk, while lower risk can be attributed to international diversification.