Empirical Studies Indicate That MNEs Have a Lower Debt/capital Ratio

question 1

True/False

Empirical studies indicate that MNEs have a lower debt/capital ratio than domestic counterparts, indicating that MNEs have a lower cost of capital.

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Definitions:

Cafeteria Plan

A type of employee benefit plan that allows workers to choose from a variety of pre-tax benefit options to design a benefits package that best suits their needs.

High Deductible

Refers to a health insurance policy with a higher deductible amount, requiring the insured to pay more out-of-pocket costs before the insurance starts covering medical expenses.

Qualified Health Plan

A health insurance plan that meets the requirements set by the Affordable Care Act, including essential health benefits, consumer protections, and coverage for pre-existing conditions.

Medicare Advantage

A type of health insurance plan in the United States offered by private companies, providing Medicare benefits.