An MNC's "global" target capital structure is:
A)always debt intensive.
B)always equity intensive.
C)sometimes different from the MNC's "local" capital structure (at a subsidiary).
D)none of the above

Question

Quizplus · Accepted Answer

A multinational corporation's global target capital structure may differ from its local capital structure at a subsidiary because the MNC may have specific financial goals or tax considerations at a global level. For example, the MNC may have access to cheaper financing in some countries, which could affect its overall target capital structure. Therefore, the MNC's global target capital structure is not always debt or equity intensive but could vary from its local capital structure at a subsidiary.

An MNC's "Global" Target Capital Structure Is