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How could we project exchange rates in order to be able to forecast exchange differences?
If someone knew how to predict exchange rates, they would be a millionaire and would not lose time on forecasting exchange differences! There is no formula that could forecast exchange rates reasonably well. Actually, assume a constant exchange rate leads to bad forecasts, but is still better than assuming the exchange rate would follow the inflation differential or the interest rates differential.
Cost of Retained Earning: - It is on occasion argued that retained earnings carry no cost since a firm isn't required to pay dividend on retained earnings. Nevertheless this isn't
#question.economic and finanancial environment.
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