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An MNE disposes of a greater capacity than a domestic firm to achieve an optimal cost of funds. Identify the answer which can justify this
An MNE disposes of a greater capacity than a domestic firm to achieve an optimal cost of funds. Identify the answer which can justify this statement.
A An MNE is more diversified geographically, it generates cash flows from different line of business, thus the variability of its cash flows is minimized.
B Commercial banks offer better financing conditions to MNEs than capital markets specially when an MNE equity security is receiving an investment grade rating.
C An MNE is not limited to its domestic market, it can issue securities in more segmented market and with more liquidity.
D International portfolio investors expect that MNEs to adopt global norms. MNEs are known to attract talented employee which are better equipped to manage their foreign exchange risk exposure.
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