Which of the following statements is FALSE?
A) Many countries regulate or limit capital inflows or outflows, and many do not allow their currencies to be freely converted into dollars, thereby creating capital market segmentation.
B) The existence of internationally integrated capital markets makes many decisions in international corporate finance more complicated but potentially more lucrative for a firm that is well positioned to exploit the market segmentation.
C) Political, legal, social, and cultural characteristics that differ across countries may require compensation in the form of a country risk premium.
D) Swaps allow firms to mitigate their exchange rate risk exposure between assets and liabilities, while still making investments and raising funds in the most attractive locales.
Answer: B
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Which item is not a component included by analysts in assessing short-term pension risk?
A. Declines in interest rates B. Debt downgrades C. Liquidity problems D. Union negotiations
On July 5, Winter Company had a market price of $58 per share of common stock. For the prior year, Winter Co had paid an annual dividend of $3.48 per share. What is the dividend yield for Winter Company?
a. 6.0% b. 0.6% c. 16.67% d. 1.67%
Why would a retailer measure direct product profitability (DPP)?
A) because DPP is highly correlated with the gross margin on a product B) because handling expenses are negligible compared with gross margin C) because handling costs can make products less profitable D) because gross margin on a product is too difficult to measure accurately E) because DPP removes the impact of paperwork expenses
The speed rating assigned to a motorcycle tire is an example of product:
A) qualities B) applications C) features D) benefits E) design