What percentage ownership typically defines FDI?
What will be an ideal response?
Foreign direct investment (FDI) occurs when a company from one country makes a significant investment that leads to at least a 10% ownership interest in a firm in another country.
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Which of the following statements is CORRECT?
A. The capital structure that maximizes expected EPS also maximizes the price per share of common stock. B. The capital structure that minimizes the interest rate on debt also maximizes the expected EPS. C. The capital structure that minimizes the required return on equity also maximizes the stock price. D. The capital structure that minimizes the WACC also maximizes the price per share of common stock. E. The capital structure that gives the firm the best bond rating also maximizes the stock price.
A tenancy at will continues until
a. the tenant dies. b. the tenant becomes bankrupt. c. the landlord becomes bankrupt. d. either the landlord or tenant notifies the other that the lease is being terminated.
The cash flows for two projects, A and B, are shown in the table, below. Notice that Project A has a life of 5 years and Project B has a 3 year life
Calculate the NPV of each project and calculate which should be adopted using the equivalent annual annuity approach. Assume that the cost of capital is 10%. Project CFs Project CFs Time A B 0 -100 -150 1 20 75 2 25 60 3 30 50 4 30 5 40 NPV 6.7097 5.3343 A) Project A is better. B) Project B is better. C) The two projects are the same.
Export management companies assist indirect exporters by serving as: A) consultants
B) attorneys. C) foreign currency traders. D) accountants.