The Morgan Stanley Dean Witter "Apples to Apples" Analysis Relies

question 6

Multiple Choice

The Morgan Stanley Dean Witter "Apples to Apples" analysis relies on:

• A)converting financial statements to U.S.GAAP to compare international investment opportunities.
• B)identifying the most significant factors affecting stock value and considering the effect of accounting diversity on these factors.
• C)the superiority of U.S.GAAP for determining the true value of international capital investments.
• D)converting all the accounts in foreign financial statements to a common set of accounting standards.

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Definitions:

Milton Friedman

An American economist and Nobel laureate who was a leading proponent of monetarism and free-market capitalism.

Serious Inflation

An extreme form of inflation characterized by rapid and uncontrollable rises in prices across the economy.

Supply-Side Economists

Economists who believe that reducing taxes and decreasing regulation will lead to an increase in production and economic growth.

Laffer Curve

A theoretical representation showing the relationship between tax rates and the amount of tax revenue collected by governments.