Because Increased External Financing by a Foreign Subsidiary Reduces the External

question 57

True/False

Because increased external financing by a foreign subsidiary reduces the external financing needed by the parent, such an action will not affect the overall MNC's cost of capital.

---

Definitions:

Median

The middle value in a sorted list of numbers, which divides the data set into two halves.

IQR

Interquartile range, a measure of statistical dispersion being the difference between the 75th and 25th percentiles, or quartiles, in a data set.

Range

The difference between the highest and lowest values in a data set, giving an indication of the data's dispersion or variability.

Median

The middle value in a set of numbers, which separates the higher half from the lower half.