Nominal Cash Flows in a Foreign Currency Should Be Discounted

question 21

Multiple Choice

Nominal cash flows in a foreign currency should be discounted ______.

• A) at a nominal discount rate in the foreign currency
• B) at a rate reflecting the parent's opportunity cost of capital in the domestic currency
• C) at a weighted average cost of capital
• D) at the cost of debt
• E) at the cost of equity

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