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Part 1 Attempt 1/5 for 10 pts. A multinational corporation has a subsidiary in a country that restricts the funds that can be remitted to
Part 1 Attempt 1/5 for 10 pts. A multinational corporation has a subsidiary in a country that restricts the funds that can be remitted to the parent company. Which source of financing is best, if any? Equity financing by the parent Debt financing from local banks in the host country Debt financing by the parent All sources are equally good Submit Part 1 Attempt 1/5 for 10 p A multinational corporation has a subsidiary in a country with high political instability. Which source of financing is best, if any? Debt financing from local banks in the host country All sources are equally good Debt financing by the parent Equity financing by the parent Submit Part 1 Attempt 1/5 for 10 p Which of the following factors are likely to decrease the cost of capital for a multinational corporation compared to a domestic firm? Check all that apply: Exposure to country risk International diversification Large size Exposure to exchange rate risk Access to international capital markets Submit
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