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.


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