For a global firm, what is the greatest value of hiring recruiters from the host country?
A. They understand the culture of the applicants for the jobs if most of the hiring is going to be in the host country.
B. All of the statements are important.
C. They understand the legal regulations around employee recruitment in the host country.
D. They speak the language of the country.
Ans: B. All of the statements are important.
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If investors have homogeneous expectations, the market is efficient, and there are no taxes, no transactions costs, and no bankruptcy costs, the Modigliani and Miller Proposition I states that:
A. bankruptcy risk rises with more leverage. B. managers cannot change the value of the company by using more or less debt. C. managers cannot increase the value of the company by employing tax saving strategies.
What is the weighted average cost of capital?
What will be an ideal response?