Which of the following statements is correct for a U.S. importing firm that owes GBP 1,000,000 payable in three months? Assume the company's WACC is 12% p.a. and the U.K. deposit rates are 8% p.a. The current spot rate is USD1.45/GBP and the 3-month forward rate is USD1.50/GBP.

		The U.S. importer can lock the payable at the cost at USD 1,464,216 using money markets
		Using a money market hedge, the U.S. importer needs to invest GBP 1,000,000 today
		The forward hedge is more expensive than the money market hedge for the importer
		The U.S. importer can lock the payable at the cost of USD 1,450,000 using a forward contract
		The U.S. importer can lock the payable at the cost at USD 1,412,338 using money markets

Which one of the following statements is most correct about the advantages of a joint venture as compared to a greenfield investment?

		Political risk is eliminated because of a local partner AND The local partner's contacts and reputation provide easier access to host country s capital markets
		The local partner's contacts and reputation provide easier access to host country's capital markets
		Local and foreign partners may have may disagree on strategic and financing issues
		Financial disclosure between joint venture partners is always transparent
		Political risk is eliminated because of a local partner

Historically, which one of the following statements is most correct about the tax burden of U.S. technology giants such as Google?

		They have been paying very low taxes because they have been incurring losses overseas
		hey have been paying very low taxes by setting up subsidiaries in low income tax countries
		They have been paying very low taxes simply by using transfer pricing
		Tthey have been paying very high taxes because they have been very profitable
		They have been paying very low taxes by using transfer pricing and channeling income through foreign subsidiaries in low income tax countries