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)its access to retained earnings
C)its credit risk
D)All of the above may affect an MNC's capital structure decision.

Question

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)its access to retained earnings
C)its credit risk
D)All of the above may affect an MNC's capital structure decision.

Quizplus · Accepted Answer

All of the given options - cash flow stability, access to retained earnings, and credit risk - may affect an MNC's capital structure decision. A higher cash flow stability increases the ability of an MNC to service its debt obligations, while greater access to retained earnings lowers the need for external financing. A higher credit risk may increase the cost of debt financing and may force the MNC to rely more on equity financing. Therefore, all these factors may influence an MNC's decision regarding its capital structure.

Which of the Following Is a Corporate Characteristic That May