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

Question

Quizplus · Accepted Answer

All of the factors listed (required rate of return, cash flows in a particular currency, and exchange rate) can affect an MNC's value. Therefore, none of them can be excluded from consideration.

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