Principles of Managerial Finance (14th Edition) (Pearson Series in Finance)
14th Edition
ISBN: 9780133507690
Author: Lawrence J. Gitman, Chad J. Zutter
Publisher: PEARSON
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Chapter 19.4, Problem 19.12RQ
Summary Introduction
To determine: The long-run benefits of having many local debt and lower MNC-based equity in the capital structure of a foreign subsidiary
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Which of the following factor is NOT related to increasing an MNC's cost of capital?
A.
Risk-free interest rate
B.
Exchange rate
C.
Size of the MNC
D.
Country risk
How may the domestic cost of capital for a foreign venture be adjusted to account for currency rate risk, political risk, and nation risk?
In general, an MNC's size, its access to international capital markets, and international diversification are favorable to an MNC's cost of capital.
Group of answer choices
True
False
Chapter 19 Solutions
Principles of Managerial Finance (14th Edition) (Pearson Series in Finance)
Ch. 19.1 - Prob. 19.1RQCh. 19.1 - Prob. 19.2RQCh. 19.1 - Prob. 19.3RQCh. 19.1 - Prob. 19.4RQCh. 19.2 - Under FASB No. 52, what are the translation rules...Ch. 19.3 - Prob. 19.6RQCh. 19.3 - Explain how differing inflation rates between two...Ch. 19.3 - Discuss macro and micro political risk. What is...Ch. 19.3 - Prob. 1FOECh. 19.4 - Prob. 1GF
Ch. 19.4 - Prob. 19.9RQCh. 19.4 - Prob. 19.10RQCh. 19.4 - Prob. 19.11RQCh. 19.4 - Prob. 19.12RQCh. 19.5 - Prob. 19.13RQCh. 19.5 - Prob. 19.14RQCh. 19.5 - Prob. 19.15RQCh. 19.6 - Prob. 19.16RQCh. 19 - Prob. 1ORCh. 19 - Prob. 19.1WUECh. 19 - Prob. 19.2WUECh. 19 - Prob. 19.3WUECh. 19 - Prob. 19.4WUECh. 19 - Prob. 19.5WUECh. 19 - Prob. 19.1PCh. 19 - Prob. 19.2PCh. 19 - Prob. 19.3PCh. 19 - ETHICS PROBLEM Is there a conflict between...
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