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The optimal capital budget: A. occurs where the marginal cost of capital equals the marginal rate of return of the opportunity set of projects. B.

The optimal capital budget:
A. occurs where the marginal cost of capital equals the marginal rate of return of the opportunity set of projects.
B. is typically larger for purely domestic firms than for MNEs.
C. is an illusion found only in international finance textbooks.
D. none of the above

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