
C h a p t e r
Chapter ObjeCtives
11
Financing Decisions of
MNCs
After studying this chapter, you should be able to:
1 Highlight the importance of financing decisions of MNCs.
2 Understand the concept of cost of capital.
3 Appreciate the importance of cost of capital in project selection.
4 Define capital structure.
5 Identify the factors that influence the capital structure.
6 Discuss various methods of financing foreign subsidiaries or projects.
7 Outline the methods used by MNCs to raise capital.
Introduction
As discussed in Chapter 10, discount rate plays a crucial role in determining the viability
or acceptability of a project. The ...