1. Companies can reduce loss from expropriation:
A by expecting low returns from high risk foreign subsidiaries
B by establishing foreign subsidiaries in countries with volatile exchange rates
C by financing the foreign subsidiary using foreign currencies
D by obtaining insurance against economic losses form expropriation
E by investing all the funds in one foreign subsidiary
2. Which of the following is not a characteristic of preferred stock?
A All accumulated dividends owed to the preferred shares must be paid before any dividends can go to the common stock
B Preferred stock holders usually get fixed stream of dividends
C Preferred stock does not mature like a bond
D Preferred stock holders usually do not have voting rights
E In the case of a bankrupcy all debt holder would be paid after preferred shareholders