Capital asset pricing theory would most likely suggest that the MNC's cost of capital is lower than that of domestic firms.

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Capital asset pricing theory (CAPM) suggests that the cost of capital for an MNC is lower than that of a domestic firm because MNCs have a more diversified portfolio of assets and can spread their risks across different countries and markets. This lower cost of capital enables MNCs to pursue more investment opportunities and expand their operations globally.

Capital Asset Pricing Theory Would Most Likely Suggest That the MNC's