The overall capitalization rate: a. is the reciprocal of the net income multiplier. b. is the ratio of net income to favorable financial leverage. c. is the inverse of the debt coverage ratio. d. all of the above are true.

Why is following an unrelated diversification strategy especially advantageous in an emerging economy? a. it allows the conglomerate to overcome institutional weaknesses in emerging economies. b. it allows the conglomerate to form a monopoly in emerging economies. c. it allows the conglomerate to use well-defined legal systems in emerging economies. d. it allows the conglomerate to take advantage of strong capital markets in emerging economies.