Suppose you work at the financial department of Bluegate, a company in Japan, which uses the...
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Suppose you work at the financial department of Bluegate, a company in Japan, which uses the Yen as its currency. The manager of Bluegate is considering building a new factory in the US, where the US dollar is the currency. The initial investment in the first year is estimated to be $8 million. Suppose the manager thinks that the US dollar but not the Yen must be used to evaluate this project. Explain whether you agree with the manager's opinion, if the international capital markets are integrated. --- MERE ** Suppose you work at the financial department of Bluegate, a company in Japan, which uses the Yen as its currency. The manager of Bluegate is considering building a new factory in the US, where the US dollar is the currency. The initial investment in the first year is estimated to be $8 million. Suppose the manager thinks that the US dollar but not the Yen must be used to evaluate this project. Explain whether you agree with the manager's opinion, if the international capital markets are integrated. --- MERE **
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If the international capital markets are fully integrated it means that there are no restrictions or ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0071339476
Volume 1, 6th Edition
Authors: Beechy Thomas, Conrod Joan, Farrell Elizabeth, McLeod Dick I
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