A firm should not hedge its short-term (up to 1 year) foreign currency exposure since exchange rates are unpredictable in the short run.

Deviations from Purchasing Power Parity (PPP) disappear quickly such that the real exchange rate is one most of the time.

Return on Assets is defined as _______.

Why would a company calculate their Risk Adjusted Return on Capital?

Operating Efficiency is defined as ______.

To measure a firm's solvency as completely as possible, we need to consider ______.

The profitability of a vacation resort in Hawaii that does all its transactions in USD cannot be exposed to fluctuations of the USD against other currencies.

Under U.S GAAP, where is the dividend received so it will be presented in the cash flow statement?

B&A Company has an EBIT of $20 million and faces a tax rate of 40% and an interest rate of 6%. What are B&A's Earnings?

When using NPV the discount rate should take into account:

When discussing the NPV of a start-up company in addition to considering the cost of capital its important to consider this concept to properly discount cash flows?