Answer:
D. international diversification
Explanation:
The Multinational corporations can reduce their risk by international diversification and reduced risk can increase debt capacity of MNC. The higher capacity to meet scheduled debt payment also reduces cost of capital.
The effect of international diversification on capital structure can be explained through
1. Co-insurance effect: Combining businesses with international firms provides reduction in operating risk and thereby increase debt capacity. This helps MNCs to include more debts in their capital structure.
2. Transaction cost theory. Internationalization is a way of internatilize intangible assets. Since intangible assets are not difficult to sale , international diversification helps MNCs to exploit their intangible assets. So MNCs with an eye of international diversification will try to develop these type of assets in their asset base.
3.Agency cost argument: MNCs will have high agency costs Diversification helps to reduce these agency costs International diversification creates larger markets and generates growth opportunities. Growth opportunities and debt ratios are inversely proportional .MNCs with higher growth opportunities will rely on equity rather than debt.
The issue will undermine the following results: the use of a stratified random sample, the wording of questions, and the under-coverage of data.
<h3 /><h3>What do you mean by population data?</h3>
Population statistics is described as a fixed of individuals who share a feature or set of these. A populace is specially decided with the aid of using geographies, together with all people in California, or all people withinside the United States.
Demographers (those who observe human populations) categorize this as the natural populace.
Therefore, The issue will undermine the following results: use of a stratified random sample, the wording of questions, and under-coverage of the population data.
Learn more about population data:
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Answer: Option (C)
Explanation:
Mortgage-backed security is referred to as an investment which is quite similar to the bond that is formed from the accumulation of home loan which are bought from several commercial banks. The investors indulged in the Mortgage Based Security tend to earn a periodic payment which are similar to the bond coupon. These securities are often referred to as the conduits.
Answer:
The stock price will be $25.72 in ten years from now.
Explanation:
The stock price in ten years from now will be equal to the present value of perpetual growth dividend stream from the stock; with the first dividend in the stream is the eleventh year dividend which is calculated as: Dividend in Year 0 x (1+growth rate)^11 = 1.42 x 1.04^11 = $2.186.
So, the stock price will be calculated as:
Stock price = 2.186/ ( 12.5% - 4%) = $25.72.
So, the answer is: The stock price will be $25.72 in ten years from now.
