Which of the following is a corporate characteristic that may affect an MNC's capital structure decision?
A) the MNC's cash flow stability
B) the MNC's access to retained earnings
C) the MNC's credit risk
D) All of these may affect an MNC's capital structure decision.

Question

Quizplus · Accepted Answer

All of these factors can impact an MNC's capital structure decision. An MNC with stable cash flows may be able to take on more debt, while an MNC with higher credit risk may need to rely on equity financing. Access to retained earnings can also impact an MNC's financing decisions, as retaining earnings can provide a source of internal financing for investment without the need to raise external capital.

Which of the Following Is a Corporate Characteristic That May