Financing Corporate Expansion (Scenario)
Intensity Games is an MNE based in San Francisco that manufactures a popular line of video game consoles and accessories. Intensity owns manufacturing facilities in China and Russia, where the components of the game consoles are manufactured and assembled before being shipped around the world. Intensity also owns numerous subsidiaries that manufacture game cartridges for Intensity game platforms. Intensity managers have determined that the firm needs to expand its Chinese facility to accommodate the increasing demand. The firm needs to raise several million dollars to finance the expansion. The financial managers of Intensity are discussing the various financing options available to the firm.
-Which of the following is most likely an advantage of Intensity accessing funds through the global capital market instead of domestic sources?
A) The maturity period of instruments is restricted to less than 365 days.
B) access to a vast number of competitive funding sources
C) access to short-term financing exclusively
D) reduced exposure to currency risk and rate fluctuation
Correct Answer:
Verified
Q36: Which of the following has contributed to
Q37: The global capital market has grown rapidly
Q38: Financing Corporate Expansion (Scenario)
Intensity Games is an
Q39: The average debt ratio in Germany, Italy,
Q39: The market consisting of all the world's
Q41: _ is the strategic reduction of cash
Q42: Net present value is defined as the
Q43: Net working capital is _.
A) the combined
Q44: Intracorporate fund transfers enable MNEs to access
Q45: A centralized depository lets managers reduce the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents