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1. Describe the concept of market efficiency. In what sense is this concept an important part of the shareholder wealth maximization objective?

2. If a capital market is not efficient, what is the impact on a firm seeking to raise capital in that market? Why?

3. Define the following terms:

a. Multinational corporation

b. Spot exchange rate

c. Forward exchange rate

d. Direct quote versus indirect quote

e. Option

f. LIBOR

g. Euro

Financial Management, Finance

  • Category:- Financial Management
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