Factors that influence of corporate characteristics include the following except a. M N Cs Cash Flow Stability
Question:
Factors that influence of corporate characteristics include the following except
a. M N C’s Cash Flow Stability — M N Cs with more stable cash flows can handle more debt because there is a constant stream of cash inflows to cover periodic interest payments on debt.
b. M N C’s Credit Risk — M N Cs that have lower credit risk have more access to credit.
c. M N C’s Access to Retained Earnings — Highly profitable M N Cs may be able to finance most of their investment with retained earnings and therefore use an equity-intensive capital structure.
d. M N C’s Guarantees on Debt — If the parent backs the debt of its subsidiary, the subsidiary’s borrowing capacity might be increased.
e. All of them
Expert Answer:
The detailed answer for the above question is provided below The correct answer is e All of th... View the full answer
