D Options: Click to open: Translation exposure: Click to open: pen: International Trade Finance: Click to open: Global cost and availability of capital: Click to open: Click to open: Multinational capital budgeting: Click to open: Question 5 3.5 pts Due to the fact that financial statement items are not all translated using the same exchange rate, the FX translation process leads to accounting imbalances. O True O False No new data to save FX Market: Click to open: Click to open: Question 6 Which of the following would NOT constitute a valid argument in favor of firms hedging FX exposure? OFs are able to hedge foreign exchange rate exposure at lower costs than most of their shareholders. O Farm managers are the ones with the most knowledge about the incoming and outgoing cash flows of the firm denominated in a foreign currency Firm managers are better equipped than shareholders to take advantage of the frequent arbitrage opportunities in currency markets. O Large swings in foreign exchange rates could trigger debt covenants that could cost the firm significant amounts of money and/or restrict some of its activities Ney