________ Are Transacted Between International Businesses and Their Banks, Between

question 69

Multiple Choice

________ are transacted between international businesses and their banks, between banks, and between governments when it is desirable to move out of one currency into another for a limited period without incurring foreign exchange risk.

• A) Carry trades
• B) Currency swaps
• C) Arbitrages
• D) Currency pairing

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Definitions:

EPS

Earnings Per Share, a financial metric indicating the portion of a company's profit allocated to each outstanding share of common stock.

Optimal Capital Structure

The best mix of debt, preferred stock, and common equity financing that maximizes a company's stock price while minimizing its cost of capital.

Earnings Per Share

A financial ratio indicating the amount of profit attributed to each outstanding share of common stock.

Cost of Equity

The return that investors expect for investing in a company's equity, usually considered in the form of dividends and share price appreciation.