Questions from Financial Management


Q: Explain the various ways in which large shareholders can attempt to govern

Explain the various ways in which large shareholders can attempt to govern an MNC and improve its management.

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Q: Ved Co. (a U.S. firm) has

Ved Co. (a U.S. firm) has a subsidiary in Germany that generates substantial earnings in euros each year. It will soon decide whether to divest the subsidiary. One week ago, a company offered to purch...

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Q: Dallen Co. has a subsidiary in Mexico that does research and

Dallen Co. has a subsidiary in Mexico that does research and development and produces prescription pills that are transported to and sold in the United States. The parent used its own funds to build t...

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Q: Poki, Inc., a U.S.-based MNC,

Poki, Inc., a U.S.-based MNC, is considering expanding into Thailand because of decreasing profit margins in the United States. The demand for Poki’s product in Thailand is very strong. However, forec...

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Q: Kylee Co. (a U.S. firm) has

Kylee Co. (a U.S. firm) has a British subsidiary that will generate cash flows of 3 million pounds at the end of each of the next two years. It uses the prevailing spot rate of the British pound of $1...

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Q: Rastell, Inc., a U.S.-based MNC,

Rastell, Inc., a U.S.-based MNC, is considering the acquisition of a Russian target to produce tablet computers and market them throughout Russia, where demand for tablets has increased substantially...

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Q: Savannah, Inc., a manufacturer of clothing, wants to increase

Savannah, Inc., a manufacturer of clothing, wants to increase its market share by acquiring a target producing a popular clothing line in Europe. This clothing line is well established. Forecasts indi...

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Q: Why are valuations of privatized businesses previously owned by the governments of

Why are valuations of privatized businesses previously owned by the governments of developing countries more difficult than valuations of existing firms in developed countries?

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Q: Blore, Inc., a U.S.- based MNC,

Blore, Inc., a U.S.- based MNC, has screened several targets. Based on economic and political considerations, only one eligible target remains in Malaysia. Blore would like you to value this target an...

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Q: Ben Holt, chief financial officer (CFO) of Blades,

Ben Holt, chief financial officer (CFO) of Blades, Inc., has decided to counteract the decreasing demand for Speedos roller blades by exporting this product to Thailand. Furthermore, due to the low co...

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