Should firms require higher rates of return

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Should firms require higher rates of return on foreign projects than on identical projects located at home? Explain

Reference no: EM131103566

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What is the 6 month forward exchange rate : Six-month T-bills have a nominal rate of 7 percent, while default-free Japanese bonds that mature in 6 months have a nominal rate of 5.5 percent. In the spot exchange market, 1 yen equals $0.009. If interest rate parity holds, what is the 6-month for..
What is the cross exchange rate between the yen and the peso : A currency trader observes that in the spot exchange market, 1 U.S. dollar can be exchanged for 9 Mexican pesos or for 111.23 Japanese yen. What is the cross exchange rate between the yen and the peso; that is, how many yen would you receive for ever..
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Should firms require higher rates of return : Should firms require higher rates of return on foreign projects than on identical projects located at home? Explain
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