Empirical studies indicate that MNEs have a lower debt/capital ratio than domestic counterparts, indicating that MNEs have a lower cost of capital

Indicate whether the statement is true or false.

Answer: FALSE

Business

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An increase in the level of trade among nations that results from regional economic integration is called ________

A) trade diversion B) mercantilism C) trade creation D) economic nationalism

Business

Given an expected market return of 12.0%, a beta of 0.75 for Benson Industries, and a risk-free rate of 4.0%, what is the expected return for Benson Industries?

A) 13.0% B) 10.0% C) 9.0% D) 4.0%

Business