Livingston Co

question 10

Multiple Choice

Livingston Co. has a subsidiary in Korea. The subsidiary reinvests half of its net cash flows into operations and remits half to the parent. Livingston's expected cash flows from domestic business are $100,000 and the Korean subsidiary is expected to generate 100 million Korean won at the end of the year. The expected value of won is $.0012. What are the expected dollar cash flows of Livingston Co.?

• A) $100,000
• B) $200,000
• C) $160,000
• D) $60,000

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Definitions:

Developed Countries

Nations with a high level of economic development and standard of living, characterized by high income per capita, advanced technological infrastructure, and a wide range of services available to citizens.

Literacy

The ability to read and write, providing the fundamental skill for communication and learning in society.

Malnutrition

A condition resulting from an imbalanced dietary intake, either through undernutrition or overnutrition.

Extremely Short

A description of a very brief amount of time or a very small quantity; in economics, it may relate to short-term market observations.