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Which of the following statements about wacc of a multinational firm (mnf) vs that of a domestic firm (df) is false?

(a) Being usually of larger size,MNF will have a larger need for cpital which can increase its WACC.

(b) Being usually of larger size,MNF will have a better termes or credit rating on debt, which can decrease its WACC.

(C) MNF has more access to international capital markets which can lower its WACC.

(d) MNF has more exposure to exchange rate risk, which can lower its WACC.

(e) MNF has more exposure to country risk, which can increase its WACC.

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M91622723

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