An MNC's "Global" Capital Structure Is

question 6

Multiple Choice

An MNC's "global" capital structure is:

• A) the MNC's capital structure in the United States.
• B) the MNC's capital structure relative to the structures of competitors across all countries.
• C) the MNC's capital structure where it has its largest subsidiary.
• D) the combination of the capital structures of the parent and all of its subsidiaries.

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Definitions:

Actual Capital Markets

Refers to live, operational markets where securities, debts, and equities are traded and capital is allocated in real time.

Market Efficiency

A theory stating that all available information is already reflected in asset prices, thus making it impossible to consistently achieve higher returns.

Capital Markets

Markets where individuals and institutions trade financial securities, such as stocks and bonds, facilitating the raising of capital for long-term investments.

Predict Future Price Movements

The process of using analytical or statistical methods to estimate the direction of prices of assets in the future.