International Financial Management
14th Edition
ISBN: 9780357130698
Author: Madura
Publisher: Cengage
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- Explain how the present value of the salvage value of an American subsidiary will be affected (from the Philippine's parent’s perspective) by (a) an increase in the risk of the foreign subsidiary and (b) an expectation that US’s currency (dollar) will depreciate against the dollar over time. *arrow_forwardWhat are the circumstances under which the capital expenditure of a foreign subsidiary might have a positive NPV in local currency terms but be unprofitable from the parent firm’s perspective?arrow_forwardA U.S.-based MNC has a subsidiary in Malaysia that generates substantial net cash inflows denominated in Ringgit Malaysia. Given this information, the MNC would ____ from a ____ of the Ringgit Malaysia. A. benefit; appreciation B. not benefit; depreciation C. benefit; depreciation D. not benefit; appreciationarrow_forward
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