Cost of capital
Assignment 1: Cost of capital
Prepare a report on the different considerations that an MNC should keep in mind when obtaining capital from a foreign source. In this report, you must outline and evaluate two possible methods for determining cost of capital. What is the likely impact of these financing methods on the company's balance sheet? To present your report, create a scenario depicting a leading steel company seeking foreign capital to expand its overseas operations and exports.
Describe your rationale for selecting the two methods.
Your report should be well researched—original and free from plagiarism. submit the report as a Microsoft Word document, not exceeding three pages, double-spaced, in Arial 12 pt font.
All written assignments and responses should follow APA rules for attributing sources.
Assignment 1 Grading Criteria
Identified the considerations when financing from a foreign source
Identified two methods of evaluating cost of capital
Analyzed the impact of each method on the company's balance sheet
Developed the scenario with appropriate company and industry information
Assignment 2: Discussion Question
Select one payment method and explain benefits and pitfalls of using it with the foreign partner you have just started exporting to. Your response should be 3-5 paragraphs long.
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Running head: xxxx OF xxxxxxxxxxxxxxxx xx xxxxxxxxxxxxx xxxx \* xxxxxxxxxxx xxxxxxxxx
Cost xx xxxxxxx
xxxxxx Steel xx x US based xxxxxxxxxxxxx xxxxxxx and xxx xxxxxxxxxx in xxxxxx Thailand, xxxxxxxxx xxxxx xxxxxx South xxxxxxx xxxxxx and many other countries. xx is xxx xx the largest xxxxx xxxxxxxxxxxxx in xxx xxxxx xxx xx xxxxx xxx the xxxxxxx xxxxxx for financing xxx its expansion xx export xxx operation. xx xxx xxxxxx xxxxx to xxxxx money for xxx xxx xxxxxxxx xxxxx has xxxx economic xxxxxx and xx xx a very good xxxxxxx xxxxxx for xxxxxxxxx xx xxxxxx years xxxxxxxx xxxxxxxx xxxxxx Marks xxxxx xxx xxxxxxx to raise $450 million xxxx the xxxxx xxxxxxxxx xxxxxxx There xxx xxx xxxxxxx of getting the xxxxxxxxx xxx xxxxxx
xxxxxxx 8.25% xxxxxxxxx xxxxxx worth $250 million and xxxxx 7.5% bonds xxxxx $200 million.
xxxxx xxxxxx worth xxxx xxxxxxxxx
The tax xxxx is considered xx be 35%.
Determining xxx xxxx of xxxxxxx
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