FindFind

International Financial Management

14th Edition
Madura
Publisher: Cengage
ISBN: 9780357130698
FindFind

International Financial Management

14th Edition
Madura
Publisher: Cengage
ISBN: 9780357130698

Solutions

Chapter 17, Problem 2BIC
Textbook Problem

According to the CAPM, how would Blades' required rate of return be affected by an expansion into Thailand? How do you reconcile this result with your answer to question 1? Do you think Blades should use the required rate of return resulting from the CAPM to discount the cash flows of the Thai subsidiary to determine its NPV?

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