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hello sir,
i wanted to know that what sort of questions come on multinationals , as i was reading kaplan text and specifically multinationals are mentioned and their dividend policies, free cash flow calculations etc are done, secondly is transfer pricing tested in exam ? and if yes what calculations are we expected to perform ?
Transfer prices have been relevant in calculating the NPV’s of investing in foreign subsidiaries, but the transfer prices have been given (and the problem is therefore a pure NPV problem). Calculating transfer prices (as per Paper F5) is not examined.
Thanks sir . Are transfer pricing related npv questions in your lectures and your techniques to tackle question 1
And sir what we have to study with regards to multi nationals in p4 for example dividend policies and their environment
There is nothing to learn for the exam in relation to multinational transfer pricing NPV questions – the questions tell you what price is being charged and it becomes a normal MPV question as in Paper F9 but with many more cash flows and the added complication of converting the currencies.
Everything needed for the exam is covered in a combination of my lectures, the lecture notes, my lectures working through past question 1’s – and, as for all papers, properly attempting every question in your Revision Kit.
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