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A5. Answer the following multimple choice question No explanation is needed. Only choose the correct answer. 1 mark each. Total Mark 3 If a UK
A5. Answer the following multimple choice question No explanation is needed. Only choose the correct answer. 1 mark each. Total Mark 3
- If a UK parent is setting up a French subsidiary, and funds from the subsidiary will be periodically sent to the parent, the ideal situation from the parent's perspective is a ____ after the subsidiary is established.
1 point
(a) weak euro
(b) stable euro
(c) strengthening euro
(d) a & b are both ideal
- Assume that the forward rate is used to forecast the spot rate. The one-year forward rate of the Canadian dollar contains a 6% discount. Today's spot rate of the Canadian dollar is 0.47. The spot rate forecasted for one year ahead is:
1 point
- 0.2032
- 0.4982
- 0.5982
- 0.4418
- 0.5467
- An international project's NPV is _________ related to the size of the initial investment and _________ related to the project's required rate of return.
1 point
- positively;positively
- positively;negatively
- negatively;negatively
- negatively;positively
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