What are the relevant cash flows for an international investment: the cash flow produced by the subsidiary in the country where it operates, or the cash flows in dollars that it sends to its parent company?

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What are the relevant cash flows for an international investment: the cash flow produced by the subsidiary in the country where it operates, or the cash flows in dollars that it sends to its parent company?

What are the relevant cash flows for an international investment: the cash flow produced by the subsidiary in the country where it operates, or the cash flows in dollars that it sends to its parent company?

Answer & Explanation (1)

Answer

The relevant cash flows for an international investment are the dividends and royalties paid by the subsidiaries to the parent company.
Thus,  relevant cash flows for an international investment are the cash flows in dollars that it sends to its parent company.

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