Net Operating Exposure

question 35

Multiple Choice

Net operating exposure

• A) is the gross finance exposure minus gross operating exposure.
• B) is the difference between the parent company and its subsidiaries exposures.
• C) is static in nature regardless of the macro-environment.
• D) is the net result of all cash outflows and inflows by currency.

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Definitions:

Administrative Fees

Charges that cover the operational costs of managing investments or conducting transactions.

WACC

Weighted Average Cost of Capital; a calculation of a firm’s cost of capital where each category of capital is proportionately weighted.

Market Values

The present rate at which a service or asset is available for purchase or sale on the market.

Book Values

The value of an asset as it appears on a balance sheet, calculated as cost minus accumulated depreciation.