1. An MNC has total assets of $ 100 million and debt of $ 20 million. The firm's cost of pretax debt is 12 percent, and its equity financing cost is 15 percent. The MNC has a corporate tax rate of 20 percent. What is the capital cost of this company?

2. Discuss the pros and cons of an MNC that has a centralized cash manager that handles all investments and loans of all MNC affiliates versus each affiliate that has a local manager that performs the branch's cash management activities. .

3. Compare and contrast the three basic types of taxes that governments apply within their tax jurisdictions.