Question

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

Answer 1

The value of a multinational corporation (MNC) is determined by the MNC's required rate of return, the amount of cash flows in a particular currency, and the exchange rate at which these cash flows are converted to dollars. There is no 'except' in the list as all factors are relevant.

Step-by-step explanation:

The value of a multinational corporation (MNC) does indeed depend on several key factors. However, the question asks which factor is not a determinant of an MNC's value. The MNC's value is determined by:

• The MNC's required rate of return.
• The amount of MNC's cash flows in a particular currency.
• The exchange rate at which cash flows are converted to dollars.

Given these options, the correct answer is that the MNC's value depends on all of the above factors.

There is no 'except' option because each listed factor plays an important role in determining the MNC's value.