(ii) Portfolio Investment -306 125 Assets -153 -556 Liabilities -154 681 ortfolio Investments Assets-153 implies that the possible transaction could be of the following type Select one: O a. Omani Company sold shares in a foreign stock exchange O b. Omani Company purchased shares from a foreign stock exchange

(ii) Portfolio Investment -306 125 Assets -153 -556 Liabilities -154 681 ortfolio Investments Assets-153 implies that the possible transaction could be of the following type Select one: O a. Omani Company sold shares in a foreign stock exchange O b. Omani Company purchased shares from a foreign stock exchange

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter16: Country Risk Analysis

Section: Chapter Questions

Problem 4BIC

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Question 13 The gain or loss on the effective portion of a U.S. parent company's hedge of a net investment in a foreign entity should be treated as: an adjustment to the retained earnings account in the stockholders' equity section of its balance sheet. other comprehensive income. a translation gain or loss in the computation of net income for the reporting period. an adjustment to a valuation account in the asset section of its balance sheet.
Which of the following is a function of the primary capital market a. To allow the Foreign Institutional Investors (FIls) to invest in the Indian capital markets b. To allow the companies to raise funds to meet their short term funds requirements through new securities O c. To provide a market for trading with the outstanding long term securities O d. To provide a market for trading with the existing short term securities
Which of the following is a function of the primary capital market a.To allow the Foreign Institutional Investors (Fils) to invest in the Indian capital markets b To allow the companies to raise funds to meet their short term funds requirements through new securities c. To provide a market for trading with the outstanding long term securities d. To provide a market for trading with the existing short term securities
An investor in the common stock of companies in a foreign country may wish to hedge against the _____ of the investor’s home currency and can do so by _____ the foreign currency in the forward market.a. depreciation; selling.b. appreciation; purchasing.c. appreciation; selling.d. depreciation; purchasing.
Questions ૨ The Common Characteristics of the Following Investment Vehicles a) Alternative Investments b) Poland Investments c) Bonds d) Equity
Assuming that a foreign entity is deemed to be operating in an environment dominated by the local currency, the entity's capital stock is translated using a. the current rate. b. a simple average rate. c. a weighted average rate. d. a historical rate.
Which one of the following is part of other comprehensive income (OCI)? Multiple Choice Sale of common stock above par. Unrealized gains resulting from remeasuring foreign currency financial statements of majority-owned subsidiaries to U.S. dollar amounts. Gains on sales of treasury stock. Receipt of land donated by a governmental unit.
MNC's can capitalize their foreign subsidiaries in many manners, including Group of answer choices Investing earnings directinly into subsidiaries Issue foreign bond offerings Issue foreign equity All the above
The following is an outline of certain potential benefits as well as costs associated with the cross-border listings of stocks: (i) - the company can expand its potential investor base (ii) - issues involving the disclosure and listing requirements (iii) - creates a secondary market for the company's shares (iv) - liquidity (v) - volatility spillover from the overseas markets (vi) - control of the company by foreigners (vii) - enhances the visibility of the company's name and its products in foreign marketplaces Which of the following represent all the potential COSTS of the cross-border listings of stocks? O (i), (iii), (iv), and (vii) ○ (ii). (v), and (vi) (ii), (iv). (vi), and (vii) (iv). (v), (vi), and (vii) (i), (ii), and (iii)
As used in international accounting, a “hedge” is: A)a business transaction made to reduce the exposure of foreign exchange risk. B)the legal barrier between the various divisions of a multinational company. C)the loss in US$ resulting from a decline in the value of the US$ relative to foreign currencies. D)one form of foreign direct investment.
2. Which of the following is not included in comprehensive income? a. gains on reissuance of treasury shares b. translation differences related to foreign operations c. fair value gains or losses on FVOCI securities. d. fair value gains or losses on FVPL securities.
The financial account is divided into three subcategories: direct investment, portfolio investment, and other investment. Portfolio investment involves acquisitions of controlling interests in foreign businesses. O investments in foreign stocks and bonds that do not involve acquisitions of control. bank deposits, currency investment, trade credit, and the like. O All of the above