You are valuing a multinational company, which receives revenues from 3 countries. 60% from Germany, 30% form USA and 10% from Iceland. The company is located it Iceland, but their financial statements is in EUR as the biggest part of their cash flow is in EUR. You decide to estimate the cash flow in EUR. You have sufficient number of comparable companies from all countries. 

What is the appropriate estimates of the risk-free rate and beta for the company?

Answer rating: 100% (QA)

To estimate the riskfree rate and beta for the multinational company we need to consider several fac... View the full answer