Question
A US based company is looking for expansion in Brazil. Based on the following information, calculate the cost of issuing equity in dollars by the
A US based company is looking for expansion in Brazil. Based on the following information, calculate the cost of issuing equity in dollars by the company.
U.S. risk-free rate = 4%, Brazil risk-free rate = 5%, U.S. corporate tax rate = 30%
Beta of project = 1.2,Expected U.S. market return = 10%
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Essentials Of Corporate Finance
Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan
6th Edition
978-0073405131, 9780073405131
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