Pepsi Co. sold its cola syrup to Russia and agreed to buy Russian vodka at a certain rate for sale in the United States for the next 5 years. What kind of a countertrade did both the parties indulge in?
What will be an ideal response?
Both the parties indulged in an offset. In such countertrade, the seller receives full payment in cash but agrees to spend a substantial amount of the money in that country within a stated time period.
Business
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As we waive the conditions of perfect capital markets and include taxes, M&M suggest that the average cost of capital for the firm will remain unchanged with the addition of debt
Indicate whether the statement is true or false
Business
Why are interest coverage ratios typically computed on a pretax basis?
What will be an ideal response?
Business