How does the availability of capital influence the theory of optimal capital structure for a multinational enterprise?
Answer to relevant QuestionsDefine “marginal weighted average cost of capital”. What is the difference between “internal” financing and “external” financing for a subsidiary? List three types of internal financing and three types of external financing available to a foreign subsidiary. What are five alternative instruments that can be used to source equity in global markets? Subsidiary Alpha in Country Able faces a 40% income tax rate. Subsidiary Beta in Country Baker faces only a 20% income tax rate. Presently each subsidiary imports from the other an amount of goods and services exactly equal ...Taxes are classified on the basis of whether they are applied directly to income, called direct taxes, or to some other measurable performance characteristic of the firm, called indirect taxes. Identify each of the following ...
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