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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? Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help
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Which financing alternative is more appropriate to protect the subsidiary
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