If a company fails to accurately predict it's cost of equity, then_________.
A. the firm's WACC will also be inaccurate
B. the firm may incorrectly accept or reject projects based on decisions made using the cost of capital computed with an incorrect cost of equity
C. the firm may not be using the proper discount rate to estimate NPV
D. All of the above are true
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________ is the pricing of goods, services, and technology between related companies.
Among pricing
B. Wholesale pricing
C. Retail pricing
D. Transfer pricing
In January 2000 Ecuador officially replaced its national currency, the Ecuadorian sucre, with the U.S. dollar. This practice is known as________________.
A. bi-currencyism
B. dollarization
C. a Yankee bailout
D. sucrerization
To MNEs, foreign project evaluation from the _________ viewpoint serves some useful purposes and/but should _______________ the ____________ viewpoint.
A. parent's; be subordinated to; local
B. local's; not dominate; parent's
C. local; not be subordinated to; parent's
D. none of the above
The ________ approach argues that exchange rates are determined by the supply and demand for a wide variety of financial assets.
A. balance of payments
B. monetary
C. law of one price
D. asset market