Expropriate firm assets is political risk

Assignment Help Financial Management

Reference no: EM132067144

1. Forward contracts are marked to market, while future contracts are not. True False

2. Usually people or companies with high risks are more likely to purchase insurance. This is called adverse selection. True False

3. The risk that an unfriendly government might expropriate a firm's assets is political risk. True False

4. When we compute the free cash flow to evaluate a firm using the weighted average cost of capital (WACC) as the discount rate, we should deduct interest expense because firms do pay interests as expense. True False

5. In general, the countries with higher interest rates tend to have higher inflation rates. True False

Reference no: EM132067144

Questions Cloud

What should be the price of the company stock today : Assume today is December 31, 2013. Imagine Works Inc. just paid a dividend of $1.35 per share at the end of 2013. The dividend is expected to grow at 18%.

When the mutual voltage should be positive or negative : Mutual inductance problem. Doesn't give me the steps, only the answer. If you could show me detailed steps please

Prepare the journal entries to record the conversion : Prepare the journal entries to record the conversion, amortization, and interest in connection with the bonds as October 31, 2015

What is the shortage cost and excess cost : In November 2016, Worker Jon must choose how much he wants to contribute to his Flexible Savings Account (FSA) for the year 2017.

Expropriate firm assets is political risk : The risk that an unfriendly government might expropriate a firm's assets is political risk.

Determine the cash flow to stockholders : Quarles Industries had the following operating results for 2015: sales = $31,140; cost of goods sold = $20,160; depreciation expense = $5,580.

Calculate the book value of the equipment : Assuming ABC Company employs the double-declining balance depreciation method, calculate the book value of the equipment at December 31, 2008

How much was beta net income for the year : Beta had beginning total assets of $30,000 and ending total assets of $70,000. How much was Beta's net income for the year

What is the stock coefficient of variation : What is the stock's coefficient of variation? Round your answer to two decimal places. Do not round intermediate calculations.

User Account

All Pages