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Assignment 3.2 Genedak-Hogan's WACC Calculate the weighted average cost of capital for Genedak-Hogan for before and after international diversification. a. Did the reduction in debt
Assignment 3.2 Genedak-Hogan's WACC Calculate the weighted average cost of capital for Genedak-Hogan for before and after international diversification. a. Did the reduction in debt costs reduce the firm's weighted average cost of capital? How would you describe the impact of international diversification on its costs of capital? b. Adding the hypothetical risk premium to the cost of equity (an added 3.0% to the cost of equity because of international diversification), what is the firm's WACC? c. Many MNEs have greater ability to control and reduce their effective tax rates when expanding international operations. If Genedak-Hogan Assignment 3.2 Genedak-Hogan's WACC Calculate the weighted average cost of capital for Genedak-Hogan for before and after international diversification. a. Did the reduction in debt costs reduce the firm's weighted average cost of capital? How would you describe the impact of international diversification on its costs of capital? b. Adding the hypothetical risk premium to the cost of equity (an added 3.0% to the cost of equity because of international diversification), what is the firm's WACC? c. Many MNEs have greater ability to control and reduce their effective tax rates when expanding international operations. If Genedak-Hogan
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