The Adjusted Present Value (APV)model That Is Suitable for an MNC

question 2

Multiple Choice

The adjusted present value (APV) model that is suitable for an MNC is the basic net present value (NPV) model expanded to:

• A)distinguish between the market value of a levered firm and the market value of an unlevered firm
• B)discern the blocking of certain cash flows by the host country from being legally remitted to the parent
• C)consider foreign currency fluctuations or extra taxes imposed by the host country on foreign exchange remittances
• D)all of these

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Definitions:

Generous Commission

A substantial financial reward given to sales employees or agents based on their sales achievements.

Company Ethics Hotline

A confidential reporting system provided by organizations for employees to report unethical behaviors, violations, or concerns, often as part of a corporate governance initiative.

Ethical Role Model

An individual whose actions and decisions serve as a guide for ethical behaviour, inspiring others to follow similar principles.

Ethical Screening

Running a contemplated decision or action through an ethics test, particularly when a contemplated action or decision is not clearly ethical or unethical.