Local political conditions o industry condition o

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Local political conditions o Industry condition o Currency condition o Local stock market conditions o Taxes applicable to the target Model for valuing a foreign target – exhibit in the book Estimated revenue of target – forecast revenue CS $100 million next year, CS$93,3 year 2 and 121$CS dollars year 3 When a MNC engages in restructuring the International screening process – exhibit in the book Lincoln concider these factors when it conducts - CLASS 23 – Chapter 17 – Cost of Capital Describe the key components of an MC capital Identify the factors that affect an MNC capital structure
Explain how the cost of capital is structured
o Private placement of bonds - MNC may offer a private placement of bonds to financial institution in the ir home country or in the foreign country where they are expanding. o Loans from financial institutions – Parent of MNC just borrows money . Cost of equity influence - How to get equity o Domestic equity offering – MNC can engage in a domestic equity offering in their home currency in which the funds are denominated in the local currency. o Global equity offering – Some MNC pursue a global equity offering in which they can simultaneously access equity from multiple countries. o Private placement of Equity - Offer a private placement of equity to financial institutions in their home country or in the foreign country where thy are expanding. Why do they have this capital structure?

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