Usually, as a manager of an international business, he should understand that the cost of capital of the developing economies is ____ compared to the developed economies. A. uncertain B. lower C. similar D. higher
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Usually, as a manager of an international business, he should understand that the cost of capital of the developing economies is ____ compared to the developed economies.
uncertain
lower
similar
higher
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- Generally, is the cost of capital for investing in international countries more or less than investing in domestic countries and explain whyPrepare a two page executive briefing on the question of whether capital generated in the industrialized countries is finding its way to and from emerging markets. Is there some critical distinction between “less developed” and “emerging”?Question:2 , Which of the following factors are likely to decrease the weighted average cost of capital for a multinational corporation compared to a domestic firm? Check all that apply: Exposure to country risk International diversification Exposure to exchange rate risk Access to international capital markets Large size Submit.............
- Allocating resources in the most efficient manner maximizes the wealth of any country. It is generally acknowledged that financial information plays an important role in efficient resource allocation. Required: Given that both of the preceding statements are correct, why are the financial reporting rules in some countries (e.g., Canada and the United States) designed to be very helpful to external investors whereas in other countries (e.g., Germany and Japan) they are intended to be less helpful? Step-by-step solution Step1of3 A country’s finandial reporting philosophy evolves and reflects the specific legal,political and financial institutions within the country. External investors are the more important source of financial capital in Canada and the United States than they have historically been in Germany and Japan. Consequently, finandial accounting and reporting standards in Canada and the U.S. have evolved to meet this public financial market demand for information-what the…whether capital generated in the industrialized countries is finding its way to and from emerging markets. Is there some critical distinction between “less developed” and “emerging” breafe paragrphDetermine 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?
- What advantages do MNEs, as compared to domestic enterprises, have with regards to raising capital, and are there any cost advantages to them relative to their overall capital structure?Consider Firm A and Firm B that both produce the same product. Firm A would more likely have more stable cash flows if its percentage of foreign sales were ____ and the number of foreign countries it sold products to was ____. A. higher; small B. lower; small C. higher; large D. higher; largeThe money market has a vital role in developing the different economies. Analyze the extent to which you agree with the statement with clarifying the participants in this market and how this market could significantly affect the economic growth.
- What do managers use to evaluate domestic and international capital investment projects? A) capital budgeting B) multilateral netting C) net present value D) transfer pricing E) parent's perspectiveHow does a cost-efficient capital market help reduce the prices of goods and services? Describe the different ways in which capital can be transferred from suppliers of capital to those who are demanding capital. Is an initial public offering an example of a primary or a secondary market transaction? Indicate whether the following instruments are examples of money market or capital market securities. a. US Treasury bills b. Long-term corporate bonds c. Common stocks d. Preferred stocks e. Dealer commercial paper Briefly explain what is meant by the term efficiency continuum.If a firm is planning for an international project, the manager should understand that the project's NPV would be ______ by the size of the initial investment and the project's required rate of return. A. positively; negatively B. positively; positively C. negatively; negatively D. negatively; positively
