PRINCIPLES OF MANAGERIAL FINANCE (SUBSCR
15th Edition
ISBN: 9780137695621
Author: SMART
Publisher: PEARSON C
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Textbook Question
Chapter 12.3, Problem 12.5RQ
Briefly explain how the following items affect the capital budgeting decisions of multinational companies: (a) exchange rate risk; (b) political risk; (c) tax law differences; (d) transfer pricing; and (e) a strategic, rather than a strictly financial, viewpoint.
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We often hear about the importance of financial statement analysis. Given the various statements prepared and all the information included therein, the question becomes which of the financial statements should get a closer review and why?
Explain what the basic financial statements are and what is the purpose of each statement.
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Revision Questions for This Week
Suppose you see the following regression table:
earnings
Coef. Std. Err.
married
7737.006 265.0139
_cons
9058.677 210.3906
1. What are the 95 confidence intervals for (i) the intercept, (ii).
the slope, rounded to the second decimal place?
2. Are any of the coefficients statistically significant at the 5%
level of significance? Explain.
3. Return to the t-statistic example from earlier (below). Do
either of the 95% confidence intervals contain zero? Should
they?
log(wage) = .284.092 educ·
(.104) (.007)
Chapter 12 Solutions
PRINCIPLES OF MANAGERIAL FINANCE (SUBSCR
Ch. 12.1 - Are most mutually exclusive capital budgeting...Ch. 12.2 - Prob. 12.2RQCh. 12.2 - Describe how each of the following behavioral...Ch. 12.3 - Briefly explain how the following items affect the...Ch. 12.4 - Describe the basic procedures involved in using...Ch. 12.4 - Explain why a firm whose stock is actively traded...Ch. 12.4 - Prob. 12.8RQCh. 12.5 - Explain why a mere comparison of the NPVs of...Ch. 12.5 - What are real options? What are some major types...Ch. 12.5 - What is the difference between the strategic NPV...
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