Question: Question:Chapter 18 Multinational Capital Budgeting and Cross-Border Acquisitions Please provide your discussion for the following questions on 14 th edition. 5, 8, 9, & 10

Question:Chapter 18 Multinational Capital Budgeting and Cross-Border Acquisitions

Please provide your discussion for the following questions on 14th edition.

5, 8, 9, & 10

5.Viewpoint and Consolidated Earnings. Which viewpoint gives results closer to the effect on consolidated earnings per share?

8.Blocked Cash Flows. In the evaluation of a potential foreign investment, how should a multinational firm evaluate cash flows in the host foreign country that are blocked from being repatriated to the firm's home country?

9.Host Country Inflation. How should an MNE factor host country inflation into its evaluation of an investment proposal?

10.Cost of Equity. A foreign subsidiary does not have an independent cost of capital. However, in order to estimate the discount rate for a comparable host-country firm, the analyst should try to calculate a hypothetical cost of capital. How is this done?

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