Typically,a Subsidiary Operating in a Developing Country Faces Prohibitively High

question 27

Multiple Choice

Typically,a subsidiary operating in a developing country faces prohibitively high cost of capital which:

• A)does not affect the parent's estimate of NPV from the proposed project.
• B)makes the parent's real cost of capital in its home market lower and increases the parent's estimate of NPV from the proposed project.
• C)makes the parent's real cost of capital in its home market higher and decreases the parent's estimate of NPV from the proposed project.
• D)makes the parent's real cost of capital in its home market higher and increases the parent's estimate of NPV from the proposed project.

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Definitions:

Unforeseeable

An event or condition that could not reasonably be predicted or expected.

Intervening Cause

An event that occurs after the defendant's act that contributes to the harm or damage, potentially absolving the defendant of liability because it breaks the chain of causation.

Reasonably Necessary

A standard requiring actions or measures that are logically appropriate and needed to achieve a certain goal or outcome, considering the circumstances.

Risk Of Harm

The potential for individuals to experience injury, damage, or loss as a result of certain actions or events.