This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: If the expected rate of return on a stock exceeds the required rate: A) The stock is experiencing ... (Read 122 times)

s.tung

  • Hero Member
  • *****
  • Posts: 577
on: Jul 10, 2018
If the expected rate of return on a stock exceeds the required rate:
 
  A) The stock is experiencing supernormal growth.
  B) The stock should be sold.
  C) The company is probably not trying to maximize price per share.
  D) The stock is a good buy.
  E) Dividends are not being declared.

Question 2

A U.S.-based multinational corporation (MNC) currently has an investment portfolio that includes
  Japanese securities valued at 10,000,000 yen. The company also owes its Japanese suppliers
  12,000,000 yen.
 
  Which of the following statements is MOST correct?
  A) The MNC will be exposed to exchange rate losses if the yen increases in value relative to the
  dollar.
  B) The MNC will be exposed to exchange rate losses if the yen declines in value relative to the
  dollar.
  C) The MNC is not exposed to exchange rate risk because it holds both assets and liabilities
  denominated in yen.
  D) The MNC can avoid exchange rate risk by paying its Japanese liabilities with dollars.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

medine

  • Sr. Member
  • ****
  • Posts: 344
Reply #1 on: Jul 10, 2018
Answer to Question 1

D

Answer to Question 2

A


s.tung

  • Hero Member
  • *****
  • Posts: 577
Reply #2 on: Jul 10, 2018
Thank you :)


medine

  • Sr. Member
  • ****
  • Posts: 344
Reply #3 on: Jul 10, 2018
Happy to help you


« previous next »
 

Did you know?

Eating food that has been cooked with poppy seeds may cause you to fail a drug screening test, because the seeds contain enough opiate alkaloids to register as a positive.

Did you know?

The most common treatment options for addiction include psychotherapy, support groups, and individual counseling.

Did you know?

Pubic lice (crabs) are usually spread through sexual contact. You cannot catch them by using a public toilet.

Did you know?

The longest a person has survived after a heart transplant is 24 years.

Did you know?

Autoimmune diseases occur when the immune system destroys its own healthy tissues. When this occurs, white blood cells cannot distinguish between pathogens and normal cells.

Variation in the rate of evolution as a function of the strength of selection, assuming genetic drif Variation in the rate of evolution as a function of the strength of selection, assuming genetic drif
Mechanical ventilation may be necessary for clients experiencing respiratory alkalosis Mechanical ventilation may be necessary for clients experiencing respiratory alkalosis
Most drugs exhibit first-order elimination, in which the rate of drug elimination is equivalent to ... Most drugs exhibit first-order elimination, in which the rate of drug elimination is equivalent to ...
The rate of facilitated diffusion The rate of facilitated diffusion
Total Fertility Rate in the United States, 1860–2008 Total Fertility Rate in the United States, 1860–2008
Experiencing MIS, 8th Edition Experiencing MIS, 8th Edition
Video: Virtual Tour of the Heart

For a complete list of videos, visit our video library