Political Risk Can Affect the Cash Flows Realized by a U.S

question 39

Multiple Choice

Political risk can affect the cash flows realized by a U.S. firm on an international investment through:

• A)expropriation of assets.
• B)operating or ownership restrictions.
• C)limitations on the repatriation of capital.
• D)a and b
• E)All of the above

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Definitions:

Return on Assets

Return on Assets (ROA) is a financial ratio that measures the profitability of a company relative to its total assets, indicating how efficient a company is at using its assets to generate profits.

Return on Inventory

A financial metric used to assess how effectively a company generates profits from its inventory investments.

Return on Stockholders' Equity

A financial ratio that measures the profitability of a corporation in relation to stockholders' equity, indicating how effectively equity is used to generate profits.

Asset Management Ratios

Those ratios—accounts receivable turnover, average collection period, inventory turnover, and asset turnover—which measure how effectively a company uses its assets.