Question: 38) When a foreign project is analyzed from the parent's point of view, the additional risk that stems 38) from it's foreign location is typically
38) When a foreign project is analyzed from the parent's point of view, the additional risk that stems 38) from it's "foreign" location is typically measured by or A) adjusting the timing: adjusting the cash flows B) adjusting the discount rates; adjusting the timing C) adjusting the discount rates; adjusting the cash flows D) none of the above 39) Calculate the cost of equity for Boston Industries using the following information: The cost of 39) debt is 5%, the corporate tax rate is 40%, the rate on Treasury Bills is 3.5%, the firm has a beta of 08, and the expected return on the market is 12%. A) 10.3% B) 6.6% C) 13.2% D) 9.6%
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