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Business, 07.08.2019 04:30 DMarje

You work for a u. s. firm, and your boss has asked you to estimate the cost of capital for countries using the euro. you know that upper s equals $ 1.2074 divided by euro and upper f 1 equals $ 1.147 divided by euro. suppose the dollar wacc for your company is known to be 8.2 %. if these markets are internationally integrated, estimate the euro cost of capital for a project with free cash flows that are uncorrelated with spot exchange rates. assume the firm pays the same tax rate no matter where the cash flows are earned.

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You work for a u. s. firm, and your boss has asked you to estimate the cost of capital for countries...
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