LaSalle Corp. is a U.S.- based MNC with subsidiaries in various less developed countries where stock markets

Question:

LaSalle Corp. is a U.S.- based MNC with subsidiaries in various less developed countries where stock markets are not well established. How can LaSalle still achieve its “global” target of 50 percent debt and 50 percent equity, if it plans to use only debt financing for the subsidiaries in these countries?

Capital Structure
Capital structure refers to a company’s outstanding debt and equity. The capital structure is the particular combination of debt and equity used by a finance its overall operations and growth. Capital structure maximizes the market value of a...