【正确答案】In a perfect financial market, rational investors have equal access to market prices and information in a frictionless market. Therefore, if financial policy is to increase firm value, it must increase expected cash flows or decrease the discount rate in a way that cannot be replicated by individual investors. MNCs are in a better position than domestic firms to take advantage of financial market imperfections through financial market arbitrage, hedging policy, access to international sources of capital, and multinational tax strategy.