Foreign Equities Can Be Acquired by Purchasing All of the Following

question 1

Multiple Choice

Foreign equities can be acquired by purchasing all of the following except

• A) American Depository Receipts (ADRs)
• B) American shares
• C) Foreign shares listed on a U.S. or foreign stock exchange
• D) Global Exchange-Traded Funds (GETFs)
• E) All of the above are ways to purchase foreign equities.

---

Definitions:

NPV Method

A financial analysis technique that calculates the net present value of an investment by discounting future cash flows to the present value.

NPV Profiles

Graphical representations that show the relationship between the Net Present Value (NPV) of investments and various discount rates.

IRR

The Internal Rate of Return is a metric used in financial analysis to estimate the profitability of potential investments, indicating the interest rate at which the net present value of all the cash flows (both positive and negative) from a project or investment equals zero.

WACC

WACC stands for Weighted Average Cost of Capital, a calculation that reflects the overall cost of a company's securities, including debt and equity, used for investment appraisal.