The ____ an MNC, the ____ Its Cost of Capital

question 37

Multiple Choice

The ____ an MNC, the ____ its cost of capital is likely to be.

• A) larger; higher
• B) larger; lower
• C) smaller; lower
• D) larger; higher AND smaller; lower

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Definitions:

Moderator Variable

A variable that qualifies an otherwise simple hypothesis with a view to improving its predictive power (e.g., A causes B, but only when C (the moderator) is present).

Improve Prediction

Enhancing the accuracy or effectiveness of forecasting future events or outcomes based on current data or trends.

Simple Hypothesis

A hypothesis stating a direct relationship between two variables, with one variable affecting the other in a straightforward manner.

Moderator Variable

is a variable that affects the strength or direction of the relationship between two other variables in research studies.