The Domestic Theory of Optimal Capital Structure Does Not Need

question 8

True/False

The domestic theory of optimal capital structure does not need to be modified for MNEs.

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Definitions:

Dollar General

A chain of variety stores in the United States known for selling items at low costs, often in rural and suburban areas.

Discount Stores

Retail outlets that sell products at prices lower than those asked by traditional retail stores, often through selling in bulk or reducing overhead costs.

Low-Cost

A pricing strategy or characteristic indicating that something is relatively inexpensive or cheaper than alternatives.

Economies Of Scale

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.