Answer:
inflation <u>SHOULD BE</u> included explicitly in the cash flow analysis, and debt payments by the subsidiary <u>SHOULD BE</u> included explicitly in the cash flow analysis.
Explanation:
A capital budgeting analysis is carried out in order to determine how a company should invest their capital assets.
The discounted cash flow method is the primary tools used in this type of analysis. Cash flows from foreign countries that have high inflation rates will be negatively affected since high inflation tends to currency depreciation which in turn leads to lower cash flows in US dollars. The same applies to debt payments made by the subsidiaries since they also reduce net cash flows. Lower net cash flows result in lower NPV and IRR.
Answer:
A) tactics
Explanation:
While a marketing strategy is the overall plan, marketing tactics are the actions required to carry out the strategy. In other words, the marketing strategy sets the goals, while the marketing tactics are the activities necessary to execute the strategy and achieve those goals.
Equity Financing is when a business owner exchanges a qualified support in the company towards to an investor. Examples that I can name are Initial Public Offering, Small Business Investment Companies, Royalty Financing, and many more that I just listed. I hope it helps to your question and have a blessed day.
Answer:
B. increases; decreases
Explanation:
Foreign exchange market can be defined as type of market in which the currency of one country is converted into that of another country.
For example, the conversion of dollars of the United States of America can be converted into naira (Nigeria) at the foreign exchange market.
Efficient market school is the market school which argues that forward exchange rates do the best possible job for forecasting future spot exchange rates, so investing in exchange rate forecasting services would be a waste of time because it is impossible to have a consistent alpha generation on a risk adjusted excess returns basis as market prices are only affected by new informations.
The efficient market school also known as the efficient market hypothesis (EMH) is a hypothesis that states that asset (share) prices reflect all information and it is very much impossible to consistently beat the market.
Also, forward exchange rates are exchange rates controlling foreign exchange transactions at a specific future date or time.
An interest rate can be defined as an amount of money that is charged as a percentage of the total amount borrowed from an individual or a financial institution.
Generally, if the interest rate rises in the United States relative to other nations, then in the foreign exchange market the demand for dollars increases and the supply of dollars decreases because of the high value of the dollar compared to the other currency.
