Issuing Stock in Foreign Markets Bloomington Co. is a large U.S.–based MNC with large subsidiaries in Germany. It has issued stock in Germany in order to establish its business. It could have issued stock in the United States and then used the proceeds in order to support the growth in Europe. What is a possible advantage of issuing the stock in Germany to finance German operations? Also, why might the German investors prefer to purchase the stock that was issued in Germany rather than purchase the stock of Bloomington on a U.S. stock exchange?

Issuing Stock in Foreign Markets Bloomington Co. is a large U.S.–based MNC with large subsidiaries in Germany. It has issued stock in Germany in order to establish its business. It could have issued stock in the United States and then used the proceeds in order to support the growth in Europe. What is a possible advantage of issuing the stock in Germany to finance German operations? Also, why might the German investors prefer to purchase the stock that was issued in Germany rather than purchase the stock of Bloomington on a U.S. stock exchange?

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter17: Multinational Capital Structure And Cost Of Capital

Section: Chapter Questions

Problem 19QA

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