Describe the concept of market efficiency in what sense is


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

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Financial Management: Describe the concept of market efficiency in what sense is
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