For firms to raise capital in international markets, it is more important to adhere to capital structure ratios similar to those found in the United States and United Kingdom than to those in the firm's home country.

Question

Quizplus · Accepted Answer

Adhering to capital structure ratios similar to those found in the United States and United Kingdom can help attract more international investors and improve the credibility of the firm in the international market, potentially resulting in lower borrowing costs and increased access to capital. On the other hand, following capital structure ratios specific to the firm's home country may not hold the same level of appeal to international investors.

For Firms to Raise Capital in International Markets, It Is