Effect on the required rate of return on the project

Assignment Help Financial Management

Reference no: EM131548364

U.S. firm that plans to expand its business overseas and use all equity obtained in the U.S. to finance the expansion. The project's cash flows are not affected by U.S. interest rates. U.S. risk-free interest rates increase just prior to obtaining the equity financing for the project. Will the change in interest rates increase, decrease, or have no effect on the required rate of return on the project? Briefly explain.

Reference no: EM131548364

Questions Cloud

Describe the different business types : 1. Describe the different business types detailed in chapter 21 and in your opinion explain which type you feel is most efficient.

Capital budgeting deals with what investments firm : Capital budgeting deals with what investments a firm should pursue.

Does this model work on all cultures and ethnicities : Locate three peer-reviewed articles on Prochaska and DiClemente's Stages of Change.

Write a draft of comparison-contrast paper : Write a draft of your comparison-contrast paper that makes seeing the differences and similarities of your chosen topics clear

Effect on the required rate of return on the project : Will the change in interest rates increase, decrease, or have no effect on the required rate of return on the project?

Significant amount of knowledge about : For this discussion, think about where you work or a business you have a significant amount of knowledge about.

The dividend yield must be at least : Suppose the? S&P 500 is at 857?, and one-year European call option with a strike price of ?$584 has a negative time value. The dividend yield must be at least.

Theory of consumer choice and frontiers of microeconomics : You have been asked to assist your organization's marketing department to better understand how consumers make economic decisions.

List and evaluate the stages of change : Choose a scenario from the given list and evaluate the stages of change. As part of your analysis, you should identify the culture of the client.

User Account

All Pages