Us firm that plans to expand its business overseas and use, Ask an Expert

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U.S. firm that plans to expand its business overseas and use all equity obtained in the U.S. to finance the expansion.

The project's cash flows are not affected by U.S. interest rates. U.S. risk-free interest rates increase just prior to obtaining the equity financing for the project.

Will the change in interest rates increase, decrease, or have no effect on the required rate of return on the project? Briefly explain.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92872811

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