The cost of capital is influenced by factors such as exchange rates and inflation from "summary" of International Financial Management, Abridged Edition by Jeff Madura
The cost of capital is a crucial concept in international financial management, as it represents the return that investors require for providing funds to a company. This cost is influenced by various factors, including exchange rates and inflation. Exchange rates play a significant role in determining the cost of capital for multinational corporations. Fluctuations in exchange rates can impact the value of a company's foreign investments and cash flows. When a foreign currency depreciates against the home currency, the cost of capital fo...
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