Which of the following is least likely to influence an MNC's capital structure?
A) stability of the MNC's cash flows
B) the MNC's credit risk
C) the MNC's access to earnings
D) the MNC's decision to invest excess cash in a Treasury bill rather than in a bank

Question

Which of the following is least likely to influence an MNC's capital structure?
A) ​stability of the MNC's cash flows
B) ​the MNC's credit risk
C) ​the MNC's access to earnings
D) ​the MNC's decision to invest excess cash in a Treasury bill rather than in a bank

Quizplus · Accepted Answer

The MNC's decision to invest excess cash in a Treasury bill rather than in a bank is least likely to influence its capital structure as it is a short-term investment decision and does not impact the MNC's long-term financing decisions. The stability of the MNC's cash flows, the MNC's credit risk, and the MNC's access to earnings are all factors that can impact the MNC's capital structure by affecting its ability to raise debt or equity financing at favorable terms.

Which of the Following Is Least Likely to Influence an MNC's