Assignment:
Q1. Are there conditions under which you should consider using a local market risk premium and a local beta estimate for a valuation, rather than a global risk premium and beta? Explain.
Q2. What impact does the globalization of capital markets have on a manager’s judgment of the appropriate cost of capital to employ when estimating the value of a subsidiary headquartered in a foreign country?
Your answer must be, typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.