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17. Parent viewpoint BiggerFirm has decided to go ahead with the MindreBolag project and is now deciding on the sources of financing. Based on information

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17. Parent viewpoint BiggerFirm has decided to go ahead with the MindreBolag project and is now deciding on the sources of financing. Based on information in Table 3 of the datafile, what is the maximum amount that shareholders of Biggerfirm would be willing to commit to the project, assuming they require a 4pp (percentage point) risk premium on foreign projects? Oa) 126.25mln SEK b) 110.85mln SEK 196.68min SEK d) 221.02mln SEK 0 WACC Bigger Firm WACC MindreBolag 10% 14% N w Year (mln SEK) Free Cash Flow Dividends to Bigger Firm License fees (for use of BiggerFirm's know-how) 1 -200 0 150 30 200 40 25 4 250 50 25 5 300 60 25 25 25

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