Whenever the Target Firm's Projected Cash Flows Are in Local

question 64

True/False

Whenever the target firm's projected cash flows are in local currency, the risk free rate is the local country's government bond rate.

---

Definitions:

University Faculty

University faculty refers to the professors, lecturers, and academic staff responsible for teaching courses and conducting research within a college or university.

Expected Number

The anticipated count or amount in a set of occurrences or outcomes based on probability.

Binomial Distributions

A probability distribution that summarizes the likelihood that a variable will take one of two independent values under a given number of observations.

Normal Distributions

Bell-shaped curves that are used in statistics to represent the distribution of a data set where most values cluster around a central region.