Theoretically, Most MNEs Should Be in a Position to Support

question 52

Multiple Choice

Theoretically, most MNEs should be in a position to support higher ________ than their domestic counterparts because their cash flows are diversified internationally.

• A) equity ratios
• B) debt ratios
• C) temperatures
• D) none of the above

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Definitions:

Overestimate

To assess something as greater, larger, or more important than it actually is.

Predicted

Expected or forecasted based on current data or trends.

Mental Set

A tendency to approach situations in a certain way because that method worked in the past.

Procedures

Established methods or steps followed to accomplish a particular task or to conduct an experiment.