In a transshipment problem, items may be transported directly from sources to destinations

Cyclane's chief financial officer thinks that the company should consider engaging in FDI by constructing new facilities in another country. She argues that government incentives may be available to offset the additional cost in this endeavor

Which of the following, if true, strengthens the CFO's argument? A) Government incentives are usually available only to companies that support a country's political activities. B) Pharmaceutical companies often have to overcome legal hurdles to operate facilities internationally. C) In many countries, the public is not favorable to American companies' building proposals. D) Building new production facilities has a significant potential for job creation. E) Engaging in FDI often involves more risk than does domestic investment.

Why is the Debt to Assets Ratio always higher than the Debt to Value ratio?

What will be an ideal response?