The MNC's value depends on all of the following, except:
A) MNC's required rate of return
B) Amount of MNC's cash flows in particular currency
C) The exchange rate at which cash flows are converted to dollars
D) The value of MNC depends on all of the above factors

Question

Quizplus · Accepted Answer

The value of a multinational corporation (MNC) depends on all of the factors mentioned in options A, B, and C. The required rate of return reflects the risk associated with investing in the MNC, while the amount of cash flows in a particular currency affects the company's earnings and profitability. The exchange rate at which cash flows are converted to dollars also impacts the MNC's financial performance. Thus, all three factors are essential to determine the value of an MNC.

The MNC's Value Depends on All of the Following, Except