Which of the following factors is not expected to generally have a favorable impact on the firm's cost of capital according to the text
A) easy access to international capital markets.
B) high degree of international diversification.
C) volatile exchange rate fluctuations.
D) all of the above

Question

Quizplus · Accepted Answer

Volatile exchange rate fluctuations can increase uncertainty and risk for the firm, potentially leading to a higher cost of capital. Easy access to international capital markets and a high degree of international diversification can both generally lower the cost of capital by providing access to a larger pool of investors and potentially reducing overall risk through diversification.

Which of the Following Factors Is Not Expected to Generally