The ABC Company,a U

question 12

Multiple Choice

The ABC Company,a U.S.-based MNC,plans to establish a subsidiary in Spain to manufacture and sell water pumps.ABC has total assets of $80 million,of which $60 million is equity financed.The remainder is financed with debt.ABC considers its current capital structure optimal.The construction cost of the facility in Spain is estimated to be €8,500 million,of which €6,500 million is to be financed at a below-market rate of interest arranged by the Spanish government.The proposed project will increase the borrowing capacity by

• A)€1,215 million.
• B)€2,215 million.
• C)€3,215 million.
• D)€4,215 million.

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Definitions:

Internal Operations

The processes and activities within an organization that contribute to its effective functioning, including production, human resources, and administrative tasks.

External Intelligence

Information gathered from outside an organization to support decision-making processes.

Big Data

Extremely large datasets that may be analysed computationally to reveal patterns, trends, and associations, especially relating to human behavior and interactions.

Business Analytics

The practice of iterative, methodical exploration of an organization's data with emphasis on statistical analysis to drive decision-making.