For an acquirer evaluating a target firm in another country, the target's cash flows can be expressed in which of the following ways?
A) Expressed in the home country's currency
B) Local country's currency
C) In real terms
D) A & B only
E) A, B, and C

Question

Quizplus · Accepted Answer

When evaluating a target firm in another country, the acquirer can express the target's cash flows in the home country's currency to understand the impact on its own financials, in the local country's currency to assess the target's operations in its native economic environment, and in real terms to evaluate the purchasing power of those cash flows over time, adjusting for inflation.

For an Acquirer Evaluating a Target Firm in Another Country