Cash flows to parents are ultimately the basis for dividends to stockholders, reinvestment elsewhere in the world, repayment of corporate-wide debt, and other proposals that affect the firm's many interest groups. Therefore, analysis of any foreign project should be from the viewpoint of the ________.

Question

Quizplus · Accepted Answer

Cash flows ultimately go to the parent company, so analysis should be from their viewpoint.

Cash Flows to Parents Are Ultimately the Basis for Dividends