Question
Your research has determined that the cost of capital for a U.S.-based MNC with a large subsidiary in Brazil is higher than for a U.S.-based
Your research has determined that the cost of capital for a U.S.-based MNC with a large subsidiary in Brazil is higher than for a U.S.-based MNC in the same industry with a large subsidiary in Japan. Assume that the subsidiary operations for each MNC are financed with local debt in the host country. What is the most likely explanation for the difference in the firms' cost of capital?
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Introductory Econometrics For Finance
Authors: Chris Brooks
2nd Edition
052169468X, 9780521694681
