Question: In recent years, some U.S.-based MNCs (such as Apple) have taken advantage of the very low interest rates in the U.S. by borrowing large amount

In recent years, some U.S.-based MNCs (such as Apple) have taken advantage of the very low interest rates in the U.S. by borrowing large amount of dollars to finance their operations. Write a short essay that explains the advantages and possible disadvantages (if any) due to this type of financing. Consider how it affects the cost of capital. Consider how it affects the capital structure, but keep in mind that the interest payments on debt borrowed at an interest rate of 3% is different than interest rate payments on debt borrowed at 10%. Also, consider how it affects the exposure to risk if the funds borrowed are used to finance foreign operations?

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