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:

Growth Rate

The measure of an entity's increase in size, value, or quantity over a specified period, often expressed as a percentage.

Rate Of Return

The rise or fall in an investment's value over a set period, shown as a percentage of the investment's initial expense.

Annual Dividend

The total amount of dividend that is paid by a company to its shareholders annually, typically represented as a sum of money for each share held.

Market Rate

The prevailing interest rate available in the marketplace on investments, loans, and deposits, reflecting the current cost of borrowing or the return on investment.