Multiple Choice
Which of the following factors is generally not expected to have a favorable impact on an MNC's cost of capital according to the text?
A) easy access to international capital markets
B) high degree of international diversification
C) high exposure to exchange rate fluctuations
D) All of these are correct.
Correct Answer:
Verified
Correct Answer:
Verified
Q42: The lower a project's beta, the _
Q43: One argument for why subsidiaries should be
Q44: An MNC with stable cash flows can
Q45: An argument for an MNC to have
Q46: The capital asset pricing theory is based
Q48: Because increased external financing by a foreign
Q49: Other things being equal, countries with relatively
Q50: In general, MNCs probably prefer to use
Q51: An MNC's cost of equity is unrelated
Q52: According to the CAPM, the required rate