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3. If a MNC has a 1lu'eri,F large amount of debt, its cost of debt should be: a. lower than its cost of equity. b.
3. If a MNC has a 1lu'eri,F large amount of debt, its cost of debt should be: a. lower than its cost of equity. b. higher than its cost of equity. c. lower than the country's riskfree rate. d. None of the above can be determined 4. A MNC will borrow less in foreign currencies if its subsidiary is expecting a stronger local currency. This statement is: a. true since the cost of borrowing will be higher b. false since the cost of borrowing will be lower {1. probably true or false depending on other factors d. none of the above
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