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.

---

Definitions:

Federal Pay Equity Legislation

Laws enacted by the federal government aimed at eliminating wage discrepancies between employees performing work of equal value, irrespective of gender.

Employment Equity

A principle of fair treatment in the workplace that seeks to eliminate discrimination and encourage diversity in hiring, training, and promotion practices.

Employment Equity

Efforts and policies aimed at eliminating discrimination and achieving equal opportunity for all employees in the workplace.