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  3. Study Set
    International Financial Management Study Set 1
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    Exam 17: Multinational Cost of Capital and Capital Structure
  5. Question
    Because Increased External Financing by a Foreign Subsidiary Reduces the External
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Because Increased External Financing by a Foreign Subsidiary Reduces the External

Question 14

Question 14

True/False

Because increased external financing by a foreign subsidiary reduces the external financing needed by the parent, such an action will not affect the overall MNC's cost of capital.

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