Ways of Managing Transaction and Translation Exposures Include Buying Forward,using

question 26

Multiple Choice

Ways of managing transaction and translation exposures include buying forward,using foreign exchange and natural hedges,such as:

• A)open-convertibility in currency transactions.
• B)leading and lagging payables and receivables.
• C)a receipt,a contract and a document of title.
• D)restricting residents or non-residents from converting currency into a foreign currency.

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Definitions:

Free Cash Flows

The amount of cash a company generates after accounting for capital expenditures needed to maintain or expand its asset base.

Capital Structure

The capital structure is the mix of a company's long-term debt, short-term debt, common equity, and preferred equity, representing how a firm finances its overall operations and growth through various sources of funds.

Free Cash Flow to Equity

The amount of cash that could be potentially distributed to shareholders after all expenses, reinvestments, and debt repayments have been taken care of.

Levered Beta

A measurement of the volatility of a stock, including the impact of the company's debt, relative to the market as a whole.