If a Firm Operates Production Plants in Different Countries but Makes

question 63

Multiple Choice

If a firm operates production plants in different countries but makes no attempt to integrate its overall operations, the company is known as a:

• A)Multi-domestic
• B)Global
• C)Transnational
• D)International

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Definitions:

Dividend Yield

A financial ratio that indicates how much a company pays out in dividends each year relative to its share price.

Coupon

The interest rate disbursed annually on a bond, indicated as a percent of its face value.

Bond Price

Bond price is the present value of a bond's future interest payments and its redemption value at maturity, which fluctuates with interest rates and the bond's credit rating.

Tax Exempt Equivalent Yield

A calculation that determines the return needed on a taxable bond to make it equivalent to the yield on a tax-exempt bond, factoring in the investor's tax rate.