CHAPTER 11
Financing Decisions of MNCs
CHAPTER OBJECTIVES
After studying this chapter, you should be able to:
- Highlight the importance of financing decisions of MNCs.
- Understand the concept of cost of capital.
- Appreciate the importance of cost of capital in project selection.
- Define capital structure.
- Identify the factors that influence the capital structure.
- Discuss various methods of financing foreign subsidiaries or projects.
- 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 discount rate is the minimum acceptable rate of return on a project. This minimum acceptable rate is known as the required rate ...
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