Optimal financing

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Wizard, Inc., has a subsidiary in a country where the government allows only a small amount of earnings to be remitted to the United States each year. Should Wizard finance the subsidiary with debt financing by the parent, equity financing by the parent, or financing by local banks in the foreign country?

Reference no: EM1352514

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Optimal financing : Wizard, Corporation, has a subsidiary in a country where the government allows only a small amount of earnings to be remitted to the US every year.
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