Consider a U

question 68

Multiple Choice

Consider a U.S.-based MNC with a wholly-owned Italian subsidiary. Following a depreciation of the dollar against the euro, which of the following conclusions are correct?

• A)The cash flow in euro could be altered due an alteration in the firm's competitive position in the marketplace.
• B)A given operating cash flow in euro will be converted to a higher U.S. dollar cash flow.
• C)Both a and b
• D)None of the above

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Definitions:

Independent Appraisal

The process of determining the value of an asset, property, or company by a professional appraiser who is not influenced by any party involved in the transaction.

Retires

The process of removing an asset from the company’s balance sheet because it has been disposed of or is no longer in use.

Capital Account Balance

Capital Account Balance is the net result of public and private international investments flowing in and out of a country, but it also refers to an individual's or company's financial statement showing the equity ownership and contributed capital.

Withdrawal

Withdrawal refers to the act of taking money out of a financial account, or the removal of participation or investment in a venture or agreement.