Other things being equal, the financial leverage of MNCs will be higher if the governments of their home countries are likely to rescue them (in the event of failure), and if their home countries are likely to experience a recession. a. less; less b. less; more c. more; more d. more; less

more, less

Explanation:

Financial leverage, also called trading on equity, refers to the degree a buisness or Multinational Corporation uses its debt to acquire additional assets. Using financial leverage to control a greater amount of assets usually causes the returns on the company's cash investment to be raised. Most times Companies may be at risk of bankruptcy when they are highly leveraged because they are unable to make payments on their debt. And it may make other lenders not able to assist them in future. A negative indication in Financial leverage is that it can increase the shareholders' return on investment.

-For a Multinational Corporation with debts,it's financial leverage of will be higher if the governments of their home countries are more likely to rescue them (in the event of failure), and if their home countries are less likely to experience a recession.

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