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?

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

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.

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 _______.

Return on Assets is defined as _______.