Explore BrainMass

Explore BrainMass

    Optimal Financing and Subsidiary

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Biz, 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 Biz finance the subsidiary with
    A) debt financing by the parent?
    B) equity financing by the parent?
    C) financing by local banks in the foreign country?

    © BrainMass Inc. brainmass.com June 3, 2020, 9:16 pm ad1c9bdddf
    https://brainmass.com/business/finance/optimal-financing-174348

    Solution Preview

    Biz, 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 Biz finance the subsidiary with
    A) Debt financing by the parent
    B) Equity financing by the ...

    Solution Summary

    This solution answers a questions regarding a subsidiary of a company.

    $2.19

    ADVERTISEMENT