Which of the following is not a factor that favorably affects an MNC's cost of capital, according to your text?
A) exchange rate risk.
B) size.
C) access to international capital markets.
D) international diversification.

Question

Quizplus · Accepted Answer

Exchange rate risk is a factor that unfavorably affects an MNC's cost of capital, as it creates uncertainties and potential losses for investors. The other options, size, access to international capital markets, and international diversification, can all contribute to reducing an MNC's cost of capital by increasing its access to financing opportunities and reducing its overall risk profile.

Which of the Following Is Not a Factor That Favorably