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Question
A major difference between capital budgeting for domestic operations and foreign operations is that:
a. cash flow estimation is easier (less complex) for foreign operations.
b. repatriation of earnings does not occur in foreign operations of multinational firms that are headquartered in the United States.
c. estimating cash flows generated from foreign operations is more complex due to fluctuating exchange rates.
d. foreign operations are not taxed by both the home country and the host country.
e. foreign operations rarely are not as risky as domestic operations.
Answer
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Related questions
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a. Agreement to increase banks' capital (owners' equity) requirements in an effort to reduce the risk that mega bank failures will cause future financial crises
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Q:
Which of the following is true about financial institutions in the United States compared to those in other countries?
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a. True
b. False
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Q:
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c. Firms with relatively high debt ratios have higher expected returns when business is bad.
d. Firms with relatively high debt ratios have higher expected returns when business is good.
e. Firms with relatively low debt ratios have higher expected returns when business is poor.