Question 1

Other things being equal, a blocked funds restriction is more likely to have a limited adverse effect on a project if the currency of that country is expected to ____ over time, and if the interest rate in that country is relatively ____.

a) appreciate; low

b) appreciate; high

c) depreciate; high

d) depreciate; low

Question 2

For an MNC, a source of equity includes

a) retained earnings

b) a global equity offering

c) a domestic equity offering

d) All of these are sources of equity for an MNC.

Question 3

The capital asset pricing model suggests that the required return on a firm's stock is a positive function of:

a) unsystematic risk

b) the market rate of return

c) the competitor fs cost of equity

d) All of these are correct.