A MNEs marginal cost of capital is constant for considerable ranges in its capital budget, but this statement cannot be made for most domestic firms.
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Because they are direct payments, dividends are among the most efficient way for foreign subsidiaries to remit funds back to the parent.
When dealing with international capital budgeting projects, the value of the project is NOT sensitive to the firm's cost of capital.
The effect of an imbalance in the BOP is the same for countries on a fixed exchange rate regime as for those on a floating exchange rate regime.
For purposes of international capital budgeting, parent cash flows often depend on the form of financing. Thus, we cannot clearly separate cash flows from financing decisions, as we can in domestic capital budgeting.