What impact does the globalization of capital markets have on a manager’s judgment of the appropriate cost of capital to employ when estimating the value of a subsidiary headquartered in a foreign country?
Answer to relevant QuestionsU.S. GAAP and IFRS accounting standards are converging. Since this is the case, why would a manager need to understand the historical differences between these standards? Under what circumstances should a manager apply a standard NPV approach, a DTA approach, or an ROV approach to valuation? Many emerging economies have restrictions on capital outflows to protect their growth and stability; for example, they may impose high taxes on repatriated profits by foreign companies. Where andhowwould you include such ...For a company with a new product, how can you estimate its potential market share? Identify the value drivers embedded in the equity cash flow model. How do the equity cash flow drivers differ from the drivers of the enterprise DCF models?
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