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 an MNC depends on all the factors mentioned in options A, B, and C. The required rate of return influences the valuation of the MNC's cash flows, the cash flows in a particular currency affect the MNC's value, as do the exchange rates used to convert them to dollars. Therefore, all of the given factors are essential in determining the MNC's value.

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