An argument for MNCs to have a debt-intensive capital structure is:
A) they are well diversified.
B) foreign government tax rules may change over time.
C) exposure to exchange rate fluctuations.
D) exposure to fund blockage.

Question

Quizplus · Accepted Answer

MNCs (Multinational Corporations) are well diversified, which can reduce the risk associated with high levels of debt, making a debt-intensive capital structure more feasible.

An Argument for MNCs to Have a Debt-Intensive Capital Structure