Alio e Olio has restaurants throughout the United States, Canada, and Western Europe. It is considering a proposal to open several restaurants in major cities of India and China
A) Alio e Olio should use the company's overall WACC to evaluate all proposals.
B) Alio e Olio should use a lower discount rate for new ventures to be sure it does not miss out on opportunities.
C) Alio e Olio should evaluate projects in different regions at discount rates that reflect the risk inherent in those projects.
D) Alio e Olio should adjust the discount rate for specific regions to reflect the specific sources of funding used.
Answer: C
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a. true b. false
Construct a list of a country's economic statistics you would assemble to help determine the probability of a devaluation of its currency within the coming year
What will be an ideal response?