(D) How the value of company could affected by management's choice for investing in U.K. stock market? ( 15 Marks, word count 150-200 words)

Value of company could be impacted by management choice for investing into United Kingdom stock market as follows-

A. It will be leading into a higher degree of diversification and it will help the company in eliminating the risk associated with investment.Diversification will be leading into elimination of the unsystematic risk and it is a form of international diversification.

B. It will also protect against the exchange rate risk to a large extent.

C. it will also mean that the reputation of the company will be increasing and it will lead to a lower cost of capital.

D. It will also mean that the company will be seeking mergers and acquisition opportunities in other Markets and maximizing the rate of return.

E. It will also help the company in order to increase the market share and increase the benefits related to lower regulatory compliances and concentration of business.