Why is the gain in a firm's value greater when more of its future foreign currency income is in the low tax region of the tax code?
What will be an ideal response?
This question is somewhat poorly phrased. If all of the firm's foreign currency income accrued in the low tax region of the tax code, there would be no gain to hedging. The gain in a firm's value (from hedging) arises from the ability to shift income from states in which it is subject to high taxes to states in which it is subject to low taxes.
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Answer the following statements true (T) or false (F)
1. The cash ratio helps to determine a company's ability to meet its short-term obligations. 2. A cash ratio below 1.0 implies that the company has an insufficient amount of cash and cash equivalents to pay current liabilities. 3. A very low cash ratio does not send a strong message to investors and creditors that the company has the ability to repay its short-term debt. 4. The only time the Petty Cash account is used in a journal entry is when the account is established, increased, or decreased.
Most OD practitioners should be familiar with all the following statistical tools except ______.
a. frequency distribution tables b. descriptive statistics c. ANOVA d. histograms
Which of the following reports call for a manager’s attention to major problems?
a. andons b. MRP alarm reports c. Kanban cards d. exception reports
For a party to a contract to receive relief from either a unilateral or a bilateral mistake, the mistake must involve a material fact
Indicate whether the statement is true or false