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State the economic conditions of cost of capital
General economic conditions
These include demand for and supply of capital within the economy and level of expected inflation. These are reflected in riskless rate of return and is common to most of the companies.
What is the Modigliani and Miller theory of dividends? Explain. The Modigliani-Miller theory of dividends states that dividend theory is not relevant. They state that it is the
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Unity of Command Unity of command is the principle in which each subordinate should be responsible to only one manager.
Q. Importance of the cost of capital? 1. Evaluating financial performance: the actual profitability of the project is compared to the projected overall cost of capital and th
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Discuss the different ways political events in a host country may affect local operations of an MNC. Answer: The answer can be organized based on the three types of political ri
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