Which of the following is not an external force that could reduce the present value of a foreign subsidiary's future cash flows?
A)higher taxes imposed by the host government
B)depreciation of the local currency
C)an increase in the parent's cost of capital
D)weakening of the economy of the host country
E)All of the above could reduce the present value of the subsidiary's future cash flows.

Question

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The Answer of Which of the following is not an external force that could reduce the present value of a foreign subsidiary's future cash flows?
A)higher taxes imposed by the host government
B)depreciation of the local currency
C)an increase in the parent's cost of capital
D)weakening of the economy of the host country
E)All of the above could reduce the present value of the subsidiary's future cash flows.

Which of the Following Is Not an External Force That