(1) What are the three characteristics that we must know about the cash flows?

Why?

(2) Using the expression of cash flows, show an MNCs valuation model algebraically for t = 1, 2, , n periods and j = 1, 2, , m countries/currencies. Be precise.

M N C s V a l u e = t = 1 {

(3) Three key sources of uncertainty/risk that an MNC is exposed to are: uncertain (1) foreign economic and (2) political conditions as well as (3) future exchange rates. Algebraically illustrate their respective impact on the valuation of an MNC.