Response to the following:
Capital Structure of MNCs:Present an argument in support of an MNC's favoring a debt-intensive capital structure. Present an argument in support of an MNC's favoring an equity-intensive capital structure.
Optimal Financing:
Wizard, Inc., has a subsidiary in a country where the government allows only a small amount of earnings to be remitted to the United States each year. Should Wizard ?nance the subsidiary with debt ?nancing by the parent, equity ?nancing by the parent, or ?nancing by local banks in the foreign country?