The Valuation of an MNC Should Rise When an Event

question 27

Multiple Choice

The valuation of an MNC should rise when an event causes the expected cash flows from foreign to ____ and when foreign currencies denominating these cash flows are expected to ____.

• A) decrease; appreciate
• B) increase; appreciate
• C) decrease; depreciate
• D) increase; depreciate

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Definitions:

Prestigious

Characterized by being held in high esteem or respect, often due to recognized success, excellence, or importance.

Insecure

Feeling uncertain or lacking confidence in oneself or one's abilities.

Competent

Having the necessary ability, knowledge, or skill to do something successfully.

Cognitive Demands

The mental effort required to complete a task or process information.