Which of the following is least likely to influence an MNC's capital structure?
A) The stability of MNC's cash flows
B) The MNC's credit risk
C) The MNC's access to earnings
D) The MNC's decision to invest excess cash in a Treasury bill rather than in a bank

Question

Quizplus · Accepted Answer

Investing excess cash in a Treasury bill rather than in a bank is a temporary and short-term decision that does not have a significant impact on an MNC's long-term capital structure. On the other hand, factors such as the stability of MNC's cash flows, the MNC's credit risk, and the MNC's access to earnings are significant determinants of the MNC's capital structure.

Which of the Following Is Least Likely to Influence an MNC's