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Mr. Gregory White
Mr. Gregory White, Master's Degree
Category: Essays
Satisfied Customers: 500
Experience:  M.A., M.S. Education / Educational Administration
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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 US$ 800 million plant in China. You are discussing this project with your spouse, who is intelligent, but has no background in finance.
1. 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. Please write at least one paragraph for each step in the WACC process.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. Update for changes in government and policy in the past 12 months. Do these changes increase or decrease risk? Is the overall risk for each element low, medium, or high.?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. Write a paragraph for each risk factor, justifying your choice of t5he numerical addition to risk.Please no plagiarism! I know there are many answers for this online but need it to be original
Submitted: 1 year ago.
Category: Essays
Customer: replied 1 year ago.
any updates?
Expert:  Jawaad Ahmed replied 1 year ago.

What should be the length of each answer and please also mention your deadline, thanks.

Customer: replied 1 year ago.
About a paragraph or two. Tomorrow is good. Thanks
Expert:  Jawaad Ahmed replied 1 year ago.

Please accept the offer, so answer may be provided, thanks.

Customer: replied 1 year ago.
That's crazy. It is a page long answer. I won't do it more than $30. If not please refund the payment
Expert:  Jawaad Ahmed replied 1 year ago.

You can see that according to requirement each steps should have a paragraph therefore it may not be completed in one page, even than you may contact JA customer service for refund, take care.

Customer: replied 1 year ago.
Is anyone doing this assignment ?