The Following Data Relates to Alpha Inc Which of the Following Statements Is True of Alpha and

question 7

Multiple Choice

The following data relates to Alpha Inc.and Sigma Solutions: $\begin{array} { l r r } \text { Ratios } & \text { Alpha Inc. } & \text { Sigma Solutions } \\\text { Foreign Assets/Total Assets } & 57 & 63 \\\text { Foreign Sales/Total Sales } & 60 & 66 \\\text { Foreign Employment/Total Employment } & 63 & 60\end{array}$ Which of the following statements is true of Alpha and Sigma?

• A)Sigma Solutions is more multinational as its ratio of foreign sales to total sales is more than Alpha Inc.
• B)Alpha Inc.is more multinational as its ratio of foreign employment to total employment is more than Sigma Solutions.
• C)Sigma Solutions has a higher multinationality index than that of Alpha Inc.
• D)Alpha Inc.has a higher multinationality index than that of Sigma Solutions.

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Definitions:

Inflation Premium (IP)

The additional amount that investors require on the return of an investment to compensate for the loss of purchasing power due to inflation.

Maturity Risk Premium (MRP)

The Maturity Risk Premium is the additional return investors demand for holding longer-term securities due to increased risk of price fluctuations and uncertainty over a long period.

Treasury Bonds

These are long-term, fixed-interest government debt securities with a maturity of more than ten years. They are considered safe investments because they are backed by the U.S. government.

Capital Gain/Loss

The increase or decrease in the value of an investment or real estate, calculated by the difference between the purchase price and the sale price.