Based on the factors that influence a country's cost of capital, the cost of capital in less developed countries is likely to be ____ than that of the U.S. and ____ than that of Japan.
A) higher; higher
B) higher; lower
C) lower; lower
D) lower; higher

Question

Quizplus · Accepted Answer

Less developed countries typically have higher risk factors, such as political instability and economic volatility, leading to a higher cost of capital compared to more stable economies like the U.S. and Japan.

Based on the Factors That Influence a Country's Cost of Capital