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An International Firm Routinely Finances New Subsidiaries by Lending Money

Question 96

Multiple Choice

An international firm routinely finances new subsidiaries by lending money from the corporate treasury so it can vary interest rates and payback terms. This company is using a(n) :


A) Debt options using external financing
B) Equity options using external financing
C) Equity options using internal financing
D) Debt options using internal financing

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