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linda_us
linda_us, Master's Degree
Category: Multiple Problems
Satisfied Customers: 1402
Experience:  A tutor for Business, Finance, Accounts and other related topics.
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China is a manufacturing superpower. Assume that you are CFO

Customer Question

China is a manufacturing superpower. Assume that you are CFO of an automobile manufacturer looking to build a $U.S.800 million plant in China. You are discussing this project with your spouse, who is intelligent, but has no background in finance.
1. Remember that your discussion should begin with a clear and logical step-by-step explanation of the theory behind the concept of "required return" on proposed capital investments. Explain how cost of equity, cost of debt, WACC, and allowances for various risk factors are involved in determining the "required return" on proposed international capital investments.
2. Discuss each single one of the main risk factors that should be allowed for (in addition to WACC) in order to determine the appropriate required return on this capital investment opportunity.
3. Make a reasonable estimate of the required return, starting with a 12% weighted average cost of capital for the U.S. auto manufacturer, and adding reasonable estimated percentages for each of the separate risk elements you can foresee.
Submitted: 1 year ago.
Category: Multiple Problems
Expert:  F. Naz replied 1 year ago.
There are three questions in all, what should be the length of each answers in word limit or page length, please also mention your deadline, thanks.
Customer: replied 1 year ago.
About a page in length for each question. the deadline is Sunday, May 24 at midnight.
Expert:  F. Naz replied 1 year ago.
Please see the offer sent and if you agree, please accept it so answer may be provided in time, thanks.
Customer: replied 1 year ago.
No thank you
Expert:  F. Naz replied 1 year ago.
Okay, take care.

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