Questions from Financial Management

Q: The appendix to this chapter explains how tax laws can affect how

The appendix to this chapter explains how tax laws can affect how much earnings subsidiaries remit to their parents. Explain why the U.S. tax rules prior to 2017 encouraged foreign subsidiaries of U.S...

Q: Explain why a territorial tax law could encourage U.S.-

Explain why a territorial tax law could encourage U.S.-based MNCs to consider moving their headquarters to another country.

Q: Your employees have estimated the net present value of Project X to

Your employees have estimated the net present value of Project X to be $1.2 million. Their report says that they have not accounted for risk but that, with such a large NPV, the project should be acce...

Q: a. Describe in general terms how future appreciation of the euro

a. Describe in general terms how future appreciation of the euro will likely affect the value (from the parent’s perspective) of a project established in Germany today by a U.S.-based MNC. Will the se...

Q: Explain how the financing decision can influence the sensitivity of the net

Explain how the financing decision can influence the sensitivity of the net present value to exchange rate forecasts.

Q: Woodsen, Inc., of Pittsburgh, Pennsylvania, considered the development

Woodsen, Inc., of Pittsburgh, Pennsylvania, considered the development of a large subsidiary in Greece. In the face of Greece’s government-debt crisis, its expected cash flows and earnings from this a...

Q: As the Sports Exports Company exports footballs to the United Kingdom,

As the Sports Exports Company exports footballs to the United Kingdom, it receives British pounds. The check (denominated in pounds) for last month’s exports just arrived. Jim Logan, the owner of the...

Q: Huskie Industries, a U.S.-based MNC, considers

Huskie Industries, a U.S.-based MNC, considers purchasing a small manufacturing company in France that sells products only within France. Huskie has no other existing business in France and no cash fl...

Q: When Walt Disney World considered establishing a theme park in France,

When Walt Disney World considered establishing a theme park in France, were the forecasted revenues and costs associated with the French park sufficient to assess the feasibility of this project? Were...

Q: Why do you think MNCs continuously assess possible forms of multinational restructuring

Why do you think MNCs continuously assess possible forms of multinational restructuring, such as foreign acquisitions or downsizing of a foreign subsidiary?