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6% WACC BiggerFirm WACC MindreBolag 14% 1 2 3 5 4 350 -250 250 300 400 Year (mln SEK) Free Cash Flow Dividends to Bigger

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6% WACC BiggerFirm WACC MindreBolag 14% 1 2 3 5 4 350 -250 250 300 400 Year (mln SEK) Free Cash Flow Dividends to Bigger Firm License fees (for use of BiggerFirm's know-how) 0 30 60 70 80 25 25 25 25 25 16. 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 2 percentage point risk premium on foreign projects? a) 179mln SEK Ob) 232mln SEK 279mln SEK Od) 311.5mln SEK 6% WACC BiggerFirm WACC MindreBolag 14% 1 2 3 5 4 350 -250 250 300 400 Year (mln SEK) Free Cash Flow Dividends to Bigger Firm License fees (for use of BiggerFirm's know-how) 0 30 60 70 80 25 25 25 25 25 16. 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 2 percentage point risk premium on foreign projects? a) 179mln SEK Ob) 232mln SEK 279mln SEK Od) 311.5mln SEK

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