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 143 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?

Hippocrates noted that blood separates into four differently colored liquids when removed from the body and examined: a pure red liquid mixed with white liquid material with a yellow-colored froth at the top and a black substance that settles underneath; he named these the four humors (for blood, phlegm, yellow bile, and black bile).

Did you know?

GI conditions that will keep you out of the U.S. armed services include ulcers, varices, fistulas, esophagitis, gastritis, congenital abnormalities, inflammatory bowel disease, enteritis, colitis, proctitis, duodenal diverticula, malabsorption syndromes, hepatitis, cirrhosis, cysts, abscesses, pancreatitis, polyps, certain hemorrhoids, splenomegaly, hernias, recent abdominal surgery, GI bypass or stomach stapling, and artificial GI openings.

Did you know?

Blood is approximately twice as thick as water because of the cells and other components found in it.

Did you know?

The top 10 most important tips that will help you grow old gracefully include (1) quit smoking, (2) keep your weight down, (3) take supplements, (4) skip a meal each day or fast 1 day per week, (5) get a pet, (6) get medical help for chronic pain, (7) walk regularly, (8) reduce arguments, (9) put live plants in your living space, and (10) do some weight training.

Did you know?

Although puberty usually occurs in the early teenage years, the world's youngest parents were two Chinese children who had their first baby when they were 8 and 9 years of age.

Mechanical ventilation may be necessary for clients experiencing respiratory alkalosis Mechanical ventilation may be necessary for clients experiencing respiratory alkalosis
Factors influencing pulse rate Factors influencing pulse rate
The Rate Law The Rate Law
Firing Rate of Individual SCN Neurons in a Tissue Culture Color bars have been added to emphasize th Firing Rate of Individual SCN Neurons in a Tissue Culture Color bars have been added to emphasize th
The mortality rate in the United States increases with age and is lower for women than men at every ... The mortality rate in the United States increases with age and is lower for women than men at every ...
Offshore spawning stock biomass, Grand Bank Atlantic Cod since the early 1980s Offshore spawning stock biomass, Grand Bank Atlantic Cod since the early 1980s
Video: ATPase function - membrane transport, contractile proteins and synthesis

For a complete list of videos, visit our video library