If Managers Intend to Adjust the Projections of Foreign Investments

question 38

Multiple Choice

If managers intend to adjust the projections of foreign investments, it is probably better to make the adjustments in:

• A)the discount rate used.
• B)the cash flows projected.
• C)both the discount rate and cash flows.
• D)exchange rate, but never in the discount rate.

---

Definitions:

Issuing

The act of distributing something, such as a company releasing new shares of stock to the public or a government agency providing official documents.

Operating Activity

Transactions that relate to the primary operations of a company, such as sales revenue and expense activities.

Sale of Equipment

Sale of equipment refers to the process of selling off business assets, such as machinery or vehicles, which can impact a company's financial statements.

Cash Received

The total amount of cash collected by a business during a specific period, including all sources of income.