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_____________________ are the taxes that a subsidiary must pay to its host country when the subsidiary pays dividends to its parent MNC. a. Reparation taxes

  1. _____________________ are the taxes that a subsidiary must pay to its host country when the subsidiary pays dividends to its parent MNC.

a. Reparation taxes

b. Excess profit taxes

c. Income taxes

d. Withholding taxes

  1. International projects are often undervalued when traditional capital budgeting approaches are used because traditional capital budgeting approaches:

a. use too many estimates of value.

b. use unrealistic discount rates.

c. are inadequate with regard to international projects.

d. do not consider the value of real options.

  1. If a firm plans a project so that it can, if necessary, not pursue the project, it has a real option to:

a. alter scale.

b. reject.

c. abandon.

d. alter inputs.

  1. If a firm expects that if it undertakes a specific project the experience gained from that project will lead it to other related opportunities, that project includes the:

a. possibility of the need for additional funding.

b. real option to grow.

c. real option to alter inputs.

d. opportunity for additional profits.

  1. What benefit can the CFO of a firm contribute to the process of considering and selecting new projects for the firm to pursue?

a. The CFO is the second most powerful position in a firm, and the backing of the CFO can ensure the success of a project.

b. The CFO has a view of the firm as a whole and can understand how a proposed project fits into the firms overall strategy and how a proposed project can add value to the firm.

c. The CFO makes the final decision on the expenditure of funds by the firm, so the CFO has to approve of a new project if it is going to go forward.

d. The CFO is ultimately responsible for the success or failure of projects, so the CFO has to approve a project before it can be undertaken.

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