Company calculates the cost of capital of project

Assignment Help Financial Management

Reference no: EM131942835

A multi national company calculates the cost of capital of a project in country x. The risk free interest rate is 7.25%, and the risk-premium is 5.25%. The market return rate in country X is 22%. Beta coefficient for the project in country X is 1.2, and in home country is 1.4. Calculate the cost of capital for the project in country x.

Reference no: EM131942835

Questions Cloud

What is the strips price : A STRIPS traded on May 1, 2016, matures in 18 years on May 1, 2034. Assuming a yield to maturity of 6.1 percent, what is the STRIPS price?

What are the monthly mortgage payments : A homeowner takes out a $277,000, 20-year fixed-rate mortgage at a rate of 5.90 percent. What are the monthly mortgage payments?

Calculate the total investment return that the investor do : A foreign investor bough 2 millions lot (1 lot: 100 shares) share of stock at $9,500/share. calculate the total investment return that the investor do.

Compare additional profits with increase in bad debt expense : In order to do so, you will have to compare additional profits with increase in bad debt expense and financing costs of additional receivables.

Company calculates the cost of capital of project : A multi national company calculates the cost of capital of a project in country x.

First compute the cost of capital of the company : The tax rate debt and equity are 40% 20 million and 10 million respectively. First compute the cost of capital of the company?

Construct capital budget-project on basis of npv and mirr : Construct the capital budget. Evaluate the project on the basis of NPV and MIRR.

Compare the ytm and the call rate : Derive its ytm and its call rate. Compare the ytm and the call rate. Are they reasonable? Why, or why not? Which the two does an investor make?

Cost of capital resulting in different hurdle rates : Currently, in the capital budgeting arena, each GCS division has its own method of calculating the cost of capital resulting in different hurdle rates;

User Account

All Pages