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Should firms require higher rates of return on foreign projects than on identical projectslocated at home? Explain.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter27: Multinational Financial Management

Section: Chapter Questions

Problem 7Q: Should firms require higher rates of return on foreign projects than on identical projects located...

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Question

Should firms require higher rates of return on foreign projects than on identical projects
located at home? Explain.

Definition Definition Percentage gain or loss from a specific investment over time. The rate of return is the difference between the closing and initial values of an investment divided by the initial value of the investment. The closing value includes any intermediate cash flows such as dividends or interest amounts.

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