3. Suppose now that Telmex has made its shares tradable internationally via cross-listing on the NYSE. Again

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3. Suppose now that Telmex has made its shares tradable internationally via cross-listing on the NYSE. Again using the CAPM paradigm, estimate Telmex’s equity cost of capital.

Discuss the possible effects of international pricing of Telmex shares on the share prices and the firm’s investment decisions.

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Daniel Wangare

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