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Which financing alternative is more appropriate to protect the subsidiary

Which financing alternative is more appropriate to protect the subsidiary



1. Target Capital Structure. LaSalle Corp. is a U.S.-based MNC with subsidiaries in various less
developed countries where stock markets are not well established. How can LaSalle still achieve
its “global” target capital structure of 50 percent debt and 50 percent equity, if it plans to use only
debt financing for the subsidiaries in these countries?
2. Financing Decision. Drexel Co. is a U.S.-based company that is establishing a project in a
politically unstable country. It is considering two possible sources of financing. Either the parent
could provide most of the financing, or the subsidiary could be supported by local loans from
banks in that country. Which financing alternative is more appropriate to protect the subsidiary?



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23 Apr 2016

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    Which financing alternative is more appropriate to protect the subsidiary

    Which financing alternative is more appropriate to protect the subsidiaryWhich financin ****** ******
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