Megan, a financial manager at Price Manufacturing, an MNE, strives to minimize the firm's working capital balances. Why would this most likely be important for Price Manufacturing?
A) Subsidiaries need working capital in host-country currencies.
B) Working capital has an increased foreign-exchange risk.
C) Working capital earns a very low rate of return.
D) Working capital is highly taxed overseas.
C
Business
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Use the information in Scenario 4.6. What action, if any, should the Burdell Labs take?
A) Do nothing—neither alternative provides a positive net present value after five years. B) Select Alternative #1. C) Select alternative #2. D) Either alternative may be selected, since the positive net present values are the same after five years.
Business
A(n) ________ effectively raises the interest cost to the borrower on a line of credit
A) operating-change restriction B) annual cleanup C) compensating balance D) commitment fee
Business