Question: doesnt allow me to make the image bigger.. i know when i zoom in on my laptop screen with (Command & +) its readable. not

doesnt allow me to make the image bigger.. i know when i zoom in on my laptop screen with (Command & +) its readable. not sure how else to make the image bigger? doesnt allow me to make the image bigger.. i know when izoom in on my laptop screen with (Command & +) its readable.

i Data Table (Click on the icon to import the table into a spreadsheet.) Symbol Pjm Before Diversification 0.88 28.0% 18.0% 3.0% 0.0% m Assumptions Correlation between G-H and the market Standard deviation of G-H's returns Standard deviation of market's returns Risk-free rate of interest Additional equity risk premium for internationalization Estimate of G-H's cost of debt in U.S. market Market risk premium Corporate tax rate Proportion of debt Proportion of equity Krf After Diversification 0.76 26.0% 18.0% 3.0% 3.0% 7.0% 5.5% 35% 32% 68% RPM kd km - Krf 7.2% 5.5% 35% 38% 62% EIV Print Done Genedak-Hogan's WACC. Use the table in the popup window, B3, to answer the problem. Genedak-Hogan (G-H) is an American conglomerate that is actively debating the impacts of international diversification of its operations on its capital structure and cost of capital. The firm is planning on reducing consolidated debt after diversification. Senior management at Genedak-Hogan is actively debating the implications of diversification on its cost of equity. All agree that the company's returns will be less correlated with the reference market return in the future, the financial advisors believe that the market will assess an additional 3.0% risk premium for "going international to the basic CAPM cost of equity. Calculate the weighted average cost of capital for Genedak-Hogan before and after international diversification. a. Did the reduction in debt costs reduce the firm's weighted average cost of capital? How would you describe the impact of international diversification on its costs of capital? b. Adding the hypothetical risk premium to the cost of equity (an added 3.0% to the cost of equity because of international diversification), what is the firm's WACC? a. Without the hypothetical additional risk premium, what is Genedak-Hogan's cost of equity before international diversification of its operations? % (Round to two decimal places.) Without the hypothetical additional risk premium, what is Genedak-Hogan's cost of equity after international diversification of its operations? | % (Round to two decimal places.) Without the hypothetical additional risk premium, what is Genedak-Hogan's WACC before international diversification of its operations? | % (Round to two decimal places.) Without the hypothetical additional risk premium, what is Genedak-Hogan's WACC after international diversification of its operations? % (Round to two decimal places.) "As a result of international diversification, the firm's access to debt has improved, resulting in a lower cost of debt capital. This is not fully appreciated, however, as the firm has chosen to reduce its overall use of debt post-diversification, which is common among MNEs." The above statement is V. (Select from the drop-down menu.) b. With the hypothetical additional risk premium, what is Genedak-Hogan's cost of equity before international diversification of its operations? % (Round to two decimal places.) With the hypothetical additional risk premium, what is Genedak-Hogan's cost of equity after international diversification of its operations? % (Round to two decimal places.) With the hypothetical additional risk premium, what is Genedak-Hogan's WACC before international diversification of its operations? % (Round to two decimal places.) With the hypothetical additional risk premium, what is Genedak-Hogan's WACC after international diversification of its operations? 1 % (Round to two decimal places.) "The firm's WACC does indeed drop for the standardized case. If, however, the market assesses an additional equity risk premium, the benefits are swamped by the higher required return on equity by the market." The above statement is V. (Select from the drop-down menu.) i Data Table (Click on the icon to import the table into a spreadsheet.) Symbol Pjm Before Diversification 0.88 28.0% 18.0% 3.0% 0.0% m Assumptions Correlation between G-H and the market Standard deviation of G-H's returns Standard deviation of market's returns Risk-free rate of interest Additional equity risk premium for internationalization Estimate of G-H's cost of debt in U.S. market Market risk premium Corporate tax rate Proportion of debt Proportion of equity Krf After Diversification 0.76 26.0% 18.0% 3.0% 3.0% 7.0% 5.5% 35% 32% 68% RPM kd km - Krf 7.2% 5.5% 35% 38% 62% EIV Print Done Genedak-Hogan's WACC. Use the table in the popup window, B3, to answer the problem. Genedak-Hogan (G-H) is an American conglomerate that is actively debating the impacts of international diversification of its operations on its capital structure and cost of capital. The firm is planning on reducing consolidated debt after diversification. Senior management at Genedak-Hogan is actively debating the implications of diversification on its cost of equity. All agree that the company's returns will be less correlated with the reference market return in the future, the financial advisors believe that the market will assess an additional 3.0% risk premium for "going international to the basic CAPM cost of equity. Calculate the weighted average cost of capital for Genedak-Hogan before and after international diversification. a. Did the reduction in debt costs reduce the firm's weighted average cost of capital? How would you describe the impact of international diversification on its costs of capital? b. Adding the hypothetical risk premium to the cost of equity (an added 3.0% to the cost of equity because of international diversification), what is the firm's WACC? a. Without the hypothetical additional risk premium, what is Genedak-Hogan's cost of equity before international diversification of its operations? % (Round to two decimal places.) Without the hypothetical additional risk premium, what is Genedak-Hogan's cost of equity after international diversification of its operations? | % (Round to two decimal places.) Without the hypothetical additional risk premium, what is Genedak-Hogan's WACC before international diversification of its operations? | % (Round to two decimal places.) Without the hypothetical additional risk premium, what is Genedak-Hogan's WACC after international diversification of its operations? % (Round to two decimal places.) "As a result of international diversification, the firm's access to debt has improved, resulting in a lower cost of debt capital. This is not fully appreciated, however, as the firm has chosen to reduce its overall use of debt post-diversification, which is common among MNEs." The above statement is V. (Select from the drop-down menu.) b. With the hypothetical additional risk premium, what is Genedak-Hogan's cost of equity before international diversification of its operations? % (Round to two decimal places.) With the hypothetical additional risk premium, what is Genedak-Hogan's cost of equity after international diversification of its operations? % (Round to two decimal places.) With the hypothetical additional risk premium, what is Genedak-Hogan's WACC before international diversification of its operations? % (Round to two decimal places.) With the hypothetical additional risk premium, what is Genedak-Hogan's WACC after international diversification of its operations? 1 % (Round to two decimal places.) "The firm's WACC does indeed drop for the standardized case. If, however, the market assesses an additional equity risk premium, the benefits are swamped by the higher required return on equity by the market." The above statement is V. (Select from the drop-down menu.)

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