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  3. Study Set
    International Financial Management Study Set 1
  4. Exam
    Exam 17: Multinational Cost of Capital and Capital Structure
  5. Question
    If the Parent ____ the Debt of the Subsidiary, the Subsidiary's
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If the Parent ____ the Debt of the Subsidiary, the Subsidiary's

Question 3

Question 3

Multiple Choice

If the parent ____ the debt of the subsidiary, the subsidiary's borrowing capacity might be ____.


A) does not back; increased
B) backs; reduced
C) does not back; reduced
D) backs; increased
E) C and D

Correct Answer:

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