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Chako Chako
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8 years ago
Why may equity finance be preferred to debt finance for developing countries?
A) There are laws insuring against any default with equity finance.
B) The risk is shared between debtor and creditor with debt finance.
C) The tax structure leaves equity finance unconstrained.
D) A fall in domestic income automatically reduces the earnings of foreign shareholders without violating any loan agreement.
E) Repayments are unaffected by falls in real income.
Textbook 
International Economics: Theory and Policy

International Economics: Theory and Policy


Edition: 10th
Author:
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machukianmachukian
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8 years ago
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Chako Author
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#2
8 years ago
Correct!
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#3
8 years ago
Thanks for the feedback, I'm sure others will appreciate it too
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