An argument for MNCs to have a debt-intensive capital structure is:
A) they are well diversified.
B) they can reduce the chance of bankruptcy.
C) it spreads the shareholder base.
D) it forces subsidiaries to pay dividends to shareholders.

Question

Quizplus · Accepted Answer

MNCs are well diversified, which can reduce the risk associated with high levels of debt, making a debt-intensive capital structure more feasible.

An Argument for MNCs to Have a Debt-Intensive Capital Structure