The examples below are all examples of a U.S. capital outflow except a . General Motors invests in an automobile plant in France. b . Charles Schwab, Inc., invests mutual fund money in the Japanese stock market. c . All answers are capital outflows. d . Microsoft opens a new office in Detroit
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The examples below are all examples of a U.S. capital outflow except
a . General Motors invests in an automobile plant in France.
b . Charles Schwab, Inc., invests mutual fund money in the Japanese stock market.
c . All answers are capital outflows.
d . Microsoft opens a new office in Detroit
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- Which of the following involves a financial outflow from the U.S. economy? a. returns paid on U.S. investments in France b. returns paid on U.S. investments in France c. Chinese investors buy real estate across the U.S. d. U.S. firms buying logging rights to China's forestsExplain how will the following transactions affect Bangladeshi NCO? Does this transaction affect direct investment or portfolio investment? Explain. Pran Foods Ltd. buys stock in Amul India Private Ltd. Walton buys parts from a Japanese manufacturer to use in the production of its refrigerators. An US firm expands its outlets in Dhaka. A Korean mutual fund buys shares of stock in Beximco.The answer is B. Please explain how to get this number. Austin Corporation, a U.S. corporation, received the following investment income during the current year: $50,000 of dividend income from the ownership of stock in a French corporation, $20,000 interest on a loan to its Dutch subsidiary, $40,000 royalty from its 50 percent owned Irish venture, and $30,000 capital gain from the sale of its stock in a Brazilian corporation. How much of Austin's income is treated as a foreign source? A) $140,000B) $110,000C) $70,000D) $60,000
- Determine the key reasons why a multinational corporation might decide to borrow in a country such as Brazil, where interest rates are high, rather than in a country like Switzerland, where interest rates are low. Provide support for your rationale. What impact does foreign investment have on the weighted average cost of capital calculations?From the U.S. standpoint, a capital outflow will occur when a Japanese investor buys a portion of the U.S. government debt. True FalseSuppose InBev Corporation (a non-U.S. MNC) buys Anheuser-Busch Corporation (a U.S. corporation) by paying the U.S. shareholders in cash. Which of the following can be said of the US capital account? Group of answer choices The acquisition of cash by US shareholders will decrease foreign ownership, which will be recorded as a debit. The US federal reserve will increase its currency reserves. InBev's reduction in cash will be recorded as a debit on the U.S. capital account.. InBev's increased ownership of US assets is recorded as a credit. U.S. shareholders increased ownership in InBev will be recorded as a credit.
- A U.S. company has the following choices of financial markets in which to raise capital. Which one will it most often prefer? a.foreign bond b.domestic banks c.foreign bank d.a new issue of common stockWhich 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 securitiesWhich 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
- During the wake of the financial crisis, Ben Bernanke, chairman of the Federal Reserve, said that “shortening the cash cycle and better use of working capital” are the most important factors as private-sector businesses struggle to overcome the current economic volatility and difficulty in accessing capital markets (IBM Global Business Services, “Managing Working Capital in the New Economic Environment, http://www-935.ibm.com/services/uk/bcs/pdf/working_capital_paper.pdf). Given the importance of working capital management, consider the case of Purple Dandelion Flower Inc. and both the amount of working capital that it is using being used in the firm and explore the prospects of how its working capital will be financed. Purple Dandelion Flower Inc. reported the following results for current assets and liabilities on its most recent balance sheets. Interestingly, the company’s sales did not change—it reported sales of $27,750 for its most recent year as well as for last year. The…Which of the following can be classified under Business Finance? Select one: a. Australian government reducing individual tax thresholds b. George's decision to purchase 20 000 units of Afterpay for himself c. Qantas' capital raising following COVID lockdowns d. Jerome Powell and the Fed applying quantitative easing to buy government bonds to support businessesWhat was the main purpose of the Troubled Asset Relief Program (TARP)? A. Sell risky assets to foreign investors in exchange for cash to increase Fed capital B. Write off mortgage debt to provide relief to home owners C. Provide tax rebates to consumers in order to support spending D. Purchase risky assets from financial institutions in exchange for new capital