________ Occur as a Result of Changes in the Value

question 3

Multiple Choice

________ occur as a result of changes in the value of currency whereas ________ occur as a result of ongoing business activities.

• A)Operating gains or losses; Translation gains or losses
• B)Swap losses; Translation gains or losses
• C)Translation gains or losses; Operating gains or losses
• D)all of the above

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Definitions:

Cost of Equity Capital

The return a company requires to decide if an investment meets capital return requirements and is typically used in the capital asset pricing model.

Price/Earnings Ratio

A valuation metric for a company that measures its current share price relative to its per-share earnings.

Growth Opportunities

Potential scenarios or plans that a company can undertake to increase its market share, revenues, or profitability.

Implied Share Price

The calculated value of a share based on future earnings expectations or business prospects.