Question: Finance Theory . Please explain with using point form so i can remember better. Thankyou Q.1) Capital structure and Cost of capital of MNC A)

Finance Theory. Please explain with using point form so i can remember better. Thankyou

Q.1) Capital structure and Cost of capital of MNC

A) Why is the cost of capital of MNC different from that for domestic firms?

B) Should MNCs subsidiaries follow its parents capital structure? Why yes and why not? Discuss.

C) What are the characteristics of capital structure decision of MNC?

Q.2) Government Influence on Exchange Rate

A) Explain the following exchange rate system used: 1- Free Floating 2- Managed Float 3- Pegged system

B) Discuss how government intervenes in the exchange rate market?

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