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Discuss the major differences between the cost of capital for a domestic firm compared to an...

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Finance

  1. Discuss the major differences between the cost of capital for adomestic firm compared to an MNC. Should an MNC have a lower orhigher cost of capital than their domestic counterpart?

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There are significant differences in cost of capital for MNC firms and domestic firms There are various factors which are in favor of MNCs to garner funds as compared to domestic firms Some of the factors are as follows Scale of operations Due to large scale of operations MNCs have a privilege as compared domestic firms They are able to raise funds through stocks and bonds very easily and with lower cost as compared to domestic companies Access to international capital markets A MNC would be having    See Answer
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Discuss the major differences between the cost of capital for adomestic firm compared to an MNC. Should an MNC have a lower orhigher cost of capital than their domestic counterpart?

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