The discount rate in capital budgeting need not be adjusted for political risk. Agree or disagree and explain why

What will be an ideal response?


Answer: We need not adjust the discount rate for political risk because most global companies operate in open, integrated markets. In this respect, political risk is diversifiable and does not require a discount adjustment but only a cash flow adjustment.

Business

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a. Critic b. Timekeeper c. Facilitator d. Scribe

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Kellner Motor Co.'s stock has a required rate of return of 11.50%, and it sells for $25.00 per share. Kellner's dividend is expected to grow at a constant rate of 7.00%. What was the last dividend, D0?

A. $0.95 B. $1.05 C. $1.16 D. $1.27 E. $1.40

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Which of the following statements is true of persuasion strategies??

A) They cannot be used in spoken communication situations. B) ?They involve the incorporation of complex technical terminologies and analysis. C) ?They involve anticipating arguments that might come from the audience. D) ?They cannot be used to differentiate a product from viable alternatives.

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A predetermined data approach to time standards can be completed before actual production begins

Indicate whether the statement is true or false

Business