According to your authors, diversifying cash flows internationally may help MNEs reduce the variability of cash flows because:
A) of a lack of competition among international firms.
B) of an offset to cash flow variability caused by exchange rate variability.
C) returns are not perfectly correlated between countries.
D) none of the above
Answer: C
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Although a firm's existing mix of financing sources may reflect its target capital structure, it is ultimately ________
A) the internal rate of return that is relevant for evaluating the firm's future investment opportunities B) the marginal cost of capital that is relevant for evaluating the firm's future investment opportunities C) the risk-free rate of return that is relevant for evaluating the firm's future investment opportunities D) the risk-free rate of return that is relevant for evaluating the firm's future financing opportunities
Factoring refers to purchasing a firm's accounts receivables at a premium
Indicate whether the statement is true or false