Question
In: Finance
The cost of capital is generally suggested __ for __ based on the contents learnt in...
The cost of capital is generally suggested __ for __ based on the contents learnt in International Finance.
higher; MNCs
higher; domestic firms
lower; domestic firms
None of these are correct.
Solutions
Expert Solution
BThe cost of capital may be Higher for an domestic firm than a MNC because of characteristics peculiar to the MNC, including its size, its access to international capitalmarkets, and its degree of international diversification.
jeff jeffy answered 2 years agoRelated Solutions
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(
)
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and water composition and on how foods are processed.
(
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current recommendations . ( )
All people need the same nutrients, but the amounts they need
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(
)
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This quiz is based on the following information: Calculate the cost of capital for company with...
This quiz is based on the following information:
Calculate the cost of capital for company with the following
capital structure
>1,500,000 ordinary shares, market price R4 per share. Last
dividend was 93c per share. Dividend growth was 14% for past 5
years
>1,000,000 12%, R1 preference shares with market value of R3 per
share
>R1,000,000 9% debenture due in 7 year and the current YTM is
10%
>R1,300,000 15% bank loan, due in June 2024
>Company tax rate is 30%
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