
FINANCING DECISIONS OF MNC
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15. A project with a positive NPV can provide return
_________the cost of capital.
(a) Less than (b) More than
(c) Equal to (d) None of these
16. Firms with _________business risk cannot have higher
financial leverage.
(a) High (b) Low
(c) Moderate (d) None of these
17. MNC is considered to be _________creditworthy than its
subsidiary unit.
(a) Less (b) More
(c) Moderate (d) None of these
18. Securities underlying the GDRs are _________.
(a) Equity shares (b) Debt securities
(c) ADRs (d) None of these
19. A callable bond can be redeemed by the _________before
maturity.