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Assume the following information for Maximus Co., a U.S.-based MNC that is considering obtaining funding for a project i
Posted: Wed Apr 06, 2022 9:07 am
by answerhappygod
- Assume The Following Information For Maximus Co A U S Based Mnc That Is Considering Obtaining Funding For A Project I 1 (100.16 KiB) Viewed 39 times
Assume the following information for Maximus Co., a U.S.-based MNC that is considering obtaining funding for a project in Germany: U.S. risk-free rate = .04 = German risk-free rate = .06 Risk premium on dollar-denominated debt provided by U.S. creditors = 0.03 = Risk premium on euro-denominated debt provided by German creditors = .04 Beta of project = 1.2 Expected U.S. market return = .10 = U.S. corporate tax rate = 0.21 = German corporate tax rate = .40 = What is Maximus's cost of dollar-denominated debt?