93% 10:40 AM a instructure-uploads.s3.amazonaws.com Simple T 6) Why is a firm cross listing and selling its shares on a foreign stock exchange? A) to improve the liquidity of its existing shares B) to increase its share price C) to increase the firm's visibility D) all of the above 7) One of the major factors to achieve less costly debt than equity is: A) the tax deductibility of depreciation. B) the tax deductibility of equity C) the tax deductibility of dividends. D) the tax deductibility of interest. 8) Financial theories always suggest about the existence of a single optimal capital structure for domestic firms. A) True B) False 9) In theory, the MNE should support a purely domestic firm because their cash flows are A) lower, more stable due to international diversification B) lower; less stable due to international diversification C) higher, more stable due to international diversification D) higher; less stable due to international diversification debt ratios than 10) Which one of the following is are negotiable certificates issued by a bank to represent the underlying shares of stock held in trust at a foreign custodian bank. A) Negotiable CDs B) International mutual funds C) Depositary receipts D) Eurodeposits