Question

Relatively high cost of capital is more likely to occur in which of the following: Select...

Relatively high cost of capital is more likely to occur in which of the following:

Select one:

a. Highly liquid domestic capital markets

b. None of the mentioned choices

c. Highly illiquid domestic capital markets

In principle, Multinational firms would have a higher ________ than domestic firms because their cash flows would be more diversified internationally.

Select one:

a. equity ratios

b. none of the choices

c. debt ratios

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Answer #1

Relatively high costs of capital are more likely to occur in:

C) highly illiquid domestic capital markets.

Multinational firms would have a higher debt ratios than domestic firms because their cash flows would be more diversified internationally.

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