Consider ABC Inc., a US$-$based MNE that has $2$ options for raising additional capital. It can either source its capital requirements from the domestic market, or the global capital marketplace. The terms for raising capital in the two markets are as follows:

$\backslash$table$[[,$Domestic$/$US capital market,$\backslash$table$[[$International$/$Global capital$],[$market$]]],[$risk$-$free rate of return,$4\%,4\%$