Question

Which of the following are issues to address when analyzing foreign companies?

I. Making forecasts in foreign and domestic currencies.

II. Estimating the cost of capital in a foreign currency.

III. Incorporating foreign-currency risk in valuations.

IV. Using translated foreign-currency financial statements.

a) I and II only.

b) I, II, and IV only.

c) II and III only.

d) I, II, III, and IV.

Answer

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