About wacc of multinational firm vs that of domestic firm

Assignment Help Financial Management

Reference no: EM13951886

Which of the following statements about wacc of a multinational firm (mnf) vs that of a domestic firm (df) is false?

(a) Being usually of larger size,MNF will have a larger need for cpital which can increase its WACC.

(b) Being usually of larger size,MNF will have a better termes or credit rating on debt, which can decrease its WACC.

(d) MNF has more exposure to exchange rate risk, which can lower its WACC.

(e) MNF has more exposure to country risk, which can increase its WACC.

Reference no: EM13951886

Questions Cloud

Role of social architect : Compare the vision you had of a "Good Leader" when you started the course and the vision you have today. Be detailed in your description. Address the role of social architect in the 21st century, characteristics,

Commissions charged on the trading of stack : Commissions charged on the trading of stack are?

What is the bonds current yield-bond face value : You are considering purchasing a 15-year 8% unsecured bond at a price of $960: How much is the bond’s face value? What is the bond’s current yield?

What is magnitude of the centripetal acceleration of the car : An object is thrown upward at an angle above the ground, eventually return to earth. (a) Is there any place along the trajectory where the velocity and acceleration are perpendicular? If so, where? (b) Is there any place where the velocity and acc..

About wacc of multinational firm vs that of domestic firm : Which of the following statements about wacc of a multinational firm (mnf) vs that of a domestic firm (df) is false?

Characteristics of a monopolistically competitive market : What are the key characteristics of a monopolistically competitive market? Some experts have argued that too many brands of breakfast cereal are on the market. Give an argument to support this view, and an argument against this view.

If you were the president of penny wise bank : If you were the president of Penny wise Bank, how would you resolve the argument between Barney and Debra?

What is variable cost per unit-cash break-even point unit : Night Shades Inc. (NSI) manufactures biotech sunglasses. The variable materials cost is $18.40 per unit, and the variable labor cost is $6.60 per unit. What is the variable cost per unit? Suppose NSI incurs fixed costs of $720,000 during a year in wh..

An aproche to understanding the natural way : Way of knowing, an aproche to understanding the natural way world that is based on inquiry(penyelidikan)

User Account

All Pages