Question

Two studies found a link between exchange rates and the stock prices of U.S. firms; a. this suggests that exchange rate changes can systematically affect the value of the firm by influencing its operating cash flows, as well influencing the domestic currency values of its assets and liabilities. b. none of the options c. this suggests that exchange rate changes can systematically affect the value of the firm by influencing the domestic currency values of its assets and liabilities. d. this suggests that exchange rate changes can systematically affect the value of the firm by influencing its operating cash flows.

Answer 1

c. this suggests that exchange rate changes can systematically affect the value of the firm by influencing the domestic currency values of its assets and liabilities.

d. this suggests that exchange rate changes can systematically affect the value of the firm by influencing its operating cash flows.

Step-by-step explanation:

Two studies found a link between exchange rates and the stock prices of U.S. firms; this suggests that exchange rate changes can systematically affect the value of the firm by influencing the domestic currency values of its assets and liabilities and its operating cash flows.