Exchange rate risk
A) exists also in direct foreign investments and foreign portfolio investments.
B) exists when the contract is written in terms of the foreign currency.
C) does not exist if the international trade contract is written in terms of the domestic currency.
D) all of the above
D
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Mrs. Biggs invested in a business that will generate the following cash flows over a three-year period. Use Appendix A. Year 0 Year 1 Year 2 Taxable revenue30,000 45,000 70,000 Deductible expenses(15,000) (15,000) (20,000)Nondeductible expenses(1,000) (4,000) (10,000)If Mrs. Biggs' marginal tax rate over the three-year period is 30% and she uses a 6% discount rate, compute the NPV of the transaction.
A. $47,781 B. $61,453 C. $52,771 D. None of the above.
When a company discards machinery that is fully depreciated, this transaction would be recorded with the following entry
A) debit Accumulated Depreciation; credit Machinery B) debit Machinery; credit Accumulated Depreciation C) debit Cash; credit Accumulated Depreciation D) debit Depreciation Expense; credit Accumulated Depreciation
Which statement concerning marketing research in retailing is not correct?
a. The use of intuition is an example of the use of marketing research in retailing. b. Marketing research reduces a retailer's risk. c. Marketing research should be a continuous process. d. Marketing research can involve such facets of a retailer's strategy as pricing, location, and store image.
A ________ strategy that copies products that already exist and attempts to build an advantage through minor variations.
A. me-too B. broad scope C. narrow scope D. technological