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The valuation of an MNC should raise when an event causes the expected cash

The valuation of an MNC should raise when an event causes the expected cash flows 



1. One of the most prevalent factors conflicting with the realization of the goal of an MNC is the existence of agency problems.
a.	true.	b. False	false.

2. A centralized management style for an MNC results in relatively high agency costs.
a.	true.	b. False	false.

3. With regard to corporate goals, an MNC is mostly concerned with maximizing _______, and a purely domestic firm is mostly concerned with maximizing _______.
A) Shareholder wealth; short-term earnings
B) Shareholder wealth; shareholder wealth
C) Short-term earnings; sales volume
D) Short-term earnings; shareholder wealth

4. For the MNC, agency costs are typically:
A) Non-existent.
B) Larger than agency costs of a small purely domestic firm.
C) Smaller than agency costs of a small purely domestic firm.
D) The same as agency costs of a small purely domestic firm.

5. The valuation of an MNC should raise when an event causes the expected cash flows from foreign to _______ and when foreign currencies denominating these cash flows are expected to _______.
A) Decrease; appreciate
B) Increase; appreciate
C) Decrease; depreciate
D) Increase; depreciate




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22 Apr 2016

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  1. Genius

    The valuation of an MNC should raise when an event causes the expected cash flows

    The valuation of an MNC should raise when an event causes the expected cash flows The valuation of ****** ******
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