In 2013 the values of U.S. stocks strongly rose by about 30 percent but other stock markets around the world had little or no growth in valuations. Also, interest rates in international bond markets were at record low levels due to central bank intervention in the United States, Europe, Japan, and elsewhere. How do these market trends affect the cost of capital for international firms? What will be the effect on the NPVs of their investment projects?

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This question is complete The cost of capital for international firms can be affected by different factors including the rate of return on equities in... View the full answer