1. Debt denomination decisions Suppose that Coleman Co. a U.S.-based MNC, has a foreign subsidiary named Mostert Co. Mostert requirds debt financing for a new project, and is deciding whether to denominate the debt in Mostert's local currency or in U.S. doliars. If Mostert denominates its debt in its U.S. dollars, it exchange rate risk on its debt repayments. True or False: If the interest rate in the United States is lower, Mostert should always denominate its debt in U.S. dollars. True False 1. Debt denomination decisions Suppose that Coleman Co, a U.S,-based MNC, has a foreign subsidiary named Mostert Co. Mostert requires debt financing for a new project, and is deciding whether to denominate the debt in Mostert's local currency or in U.S. dollars. If Mostert denominates its debt in its U.S. dollars, it exchange rate risk on its debt repayments. True or False: If the interest rate in the United State: t should always denominate its debt in U.S. dollars. True False