Which of the Following Would Be an Example of Direct

question 246

Multiple Choice

Which of the following would be an example of direct foreign investment in DVCs?

• A)a grant from the World Bank to build an irrigation project in Kenya
• B)the financing of a new chemical plant in Peru by a German company
• C)a low-interest loan from the U.S. government to Turkey to purchase military hardware
• D)a loan from the Japanese government to the Indonesian government to pay for electronic equipment

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Definitions:

Book Value

The net value of a company's assets minus its liabilities, as recorded on its financial statements; often compared to the company's market value.

Common Dividends

Payments made out of a company's profits to shareholders, representing a share in the earnings of the company.

Shares Outstanding

Shares outstanding refer to the total number of shares of a company held by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s insiders.

BEP

BEP, or Break-Even Point, is the financial analysis point at which total costs and total revenues are equal, implying no net loss or gain.