Which of the following is characteristic of the parent's perspective in capital budgeting?
A) It estimates future cash flows from the project in the functional currency.
B) It adds the subsidiary's after-tax operating cash flows with the project's cost of capital.
C) It seldom uses the currency of the primary economic environment in which it operates.
D) It estimates the incremental after-tax operating cash flows in the subsidiary's local currency.
A
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Which of the following is true
A. The Gaussian copula model assumes that the defaults of different companies are independent. B. The Gaussian copula model assumes that defaults, conditional on the value of a factor , are independent. C. The Gaussian copula model assumes that the number of defaults is normally distributed. D. None of the above.
Harlose Suits owns more equipment than required for manufacturing goods during periods of regular demand in order to tackle sudden demand surges. It also has a certain reserve of produced goods to tackle material shortages. In this case, the reserve of equipment and produced goods are examples of _____
A) a physical constraint B) the capacity cushion C) overbooking D) capacity straddle