Which company will effectively reduce cash flow volatility

Assignment Help Financial Management
Reference no: EM13935740

FDI to reduce cash flow volatility. Rideau Chemical SA and Robert Sarl (both French companies) have similar intentions to reduce the volatility of their cash flows. Rideau implemented a long-range plan to establish 40% of its business in Canada. Robert implemented a long-range plan to establish 30% of its business in Europe and Asia, scattered among 12 different countries. Which company will more effectively reduce cash flow volatility once the plans are achieved?

Reference no: EM13935740

Questions Cloud

Find the diameter of the connecting rod : Find the diameter of the connecting rod at its thinnest part, if the permissible tensile stress is 35 N/mm2.
The company will hire two additional sales managers : The company will hire two additional sales managers at a base salary of $90,000 each.
Functions currently reflected in the pedagogy : What functions does literacy play in the out-of-school lives of adolescents? To what extent are these functions currently reflected in the pedagogy, curriculum and assessment in high schools?
Which firm is more likely to benefit from economies of scale : Max has decided to establish distributorship subsidiaries in various countries, while Marie has decided to establish manufacturing subsidiaries in various countries. Which firm is more likely to benefit from economies of scale?
Which company will effectively reduce cash flow volatility : Robert implemented a long-range plan to establish 30% of its business in Europe and Asia, scattered among 12 different countries. Which company will more effectively reduce cash flow volatility once the plans are achieved?
Evaluate a range of strategic organisational hrm : Evaluate a range of strategic organisational HRM interventions aiming to create employee engagement and competitive advantage
Would the amount of fdi by non-uk mncs increase or decrease : Impact of import restrictions. If the United Kingdom imposed long-term restrictions on imports, would the amount of FDI by non-UK MNCs in the United Kingdom increase, decrease, or be unchanged? Explain.
Identify the different issues that may affect download time. : Choose a DTD, do not create any form elements. Note the following:
Discuss the japanese work ethic : Discuss the Japanese work ethic. Is this comparable to the American work ethic? Japanese corporations typically involve many more organizational levels and people in the development of implementation plans than do U.S. corporations. Is this ap..

Reviews

Write a Review

Financial Management Questions & Answers

  Net operating income and net selling price model

A small shopping center is expected to produce net operating income of $23,880 in year 1. You expect NOI to increase by 4 percent per year over an expected holding period of seven years. Property value is expected to increase by 3 percent per year. T..

  Growth rate indefinitely

Thirsty Cactus Corp. just paid a dividend of $1.50 per share. The dividends are expected to grow at 40 percent for the next 9 years and then level off to a 7 percent growth rate indefinitely. what is the price of the stock today?

  What is the beta for the companys stock

You are told the WACC for the following firm is 7.95 percent. The company pays no dividends. What is the beta for the company’s stock? Debt: 100,000 bonds with a par value of $1,000 and a quoted price of 112.30. The bonds have coupon rate of 6.1 perc..

  Triumph company has total assets worth 6413228 next year it

1.planning models that are more sophisticated than the percent of sales method have2.firms that achieve higher growth

  The new equilibrium price of the stock

A common stock currently has a beta; of 1.3, the risk-free rate is an annual rate of 6 percent, and the market return is an annual rate of 12 percent. The stock is expected to generate per-share benefits of $5.20 during the coming period. A toxic spi..

  Average and marginal tax rates on taxable income

Suppose that in addition to $16.85 million of taxable income, Texas Taco, Inc., received $9,200,000 of interest on state-issued bonds and $820,000 of dividends on common stock it owns in Arizona Taco, Inc. Use the tax schedule in Table 2.3 to calcula..

  Capital budgeting accept-reject decisions

Do the NPV and IRR methods always agree with respect to capital budgeting accept-reject decisions? Answer and explain.

  What should the price per share be

Preferred stock has a dividend of $12 a year. The required return is 6%. what should the price per share be?

  What price to sell them that product

If you are renewing a contract with a company where inflation is expected to occur, would you increase or decrease the products sold there? You expect payments with their currency. How would you determine when to get paid and at what price to sell th..

  Present value and multiple cash flows

Present Value and Multiple Cash Flows [LO1] Wainright Co. has identified an investment project with the following cash flows. If the discount rate is 10 percent, what is the present value of these cash flows? What is the present value at 18 percent? ..

  Treasury bond with a par value-marginal tax bracket

Amila paid $9,600 for a Treasury bond with a par value of $10,000 and a coupon rate of 8.5 percent. Two years later, Amila sold the bond for $9,900. What are her total tax consequences if she is in a 25 percent marginal tax bracket?

  Expected to pay their first annual dividend

A company is expected to pay their first annual dividend three years from now. That payment will be $0.50 a share. Starting in year four, the company will increase the dividend by 4% per year. The required return is 12%. What is the estimated value o..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd