Discuss how diversification in an investment helps in reducing the risk associated with the investment

Description

Your discussion should focus on the following risks: project-specific risk, industry-specific risk, competitive risk, international risk, and market risk

Discuss how diversification in an investment helps in reducing the risk associated with the investment

Use different models like CAPM, APM, etc., to conduct an analysis of risk vs return

Valuation methods used to choose the best investment option

Your discussion should focus on cost approach, market approach and discounted cash flow approach.

Use examples and comparative analysis to support your discussion

A detailed financial plan for the multinational corporation

Here you will discuss how you will create a detailed financial plan for the selected organization. Make sure to consider various barriers associated with capital flows.

The multinational financial management process includes cash management, inventory and accounts receivable management, financing and capital expenditures.

Consider the factors affecting International Portfolio Investment

Cost of capital associated with the corporation based on the current capital structure

In this section include cost of capital computations associated with the selected organization.

Discuss each component used in the cost of capital formula

Discuss challenges associated with cost of capital computations

Capital budgeting and capital structure decisions

Company Selection

You can choose any one of the following MNC’s or you can select a company of your own choice:

The Coca-Cola Company

Resources

Recommended resources for your analysis are:

Yahoo! Finance

Chron: The Capital Structure for a Multinational Corporation

Harvard Business Review: A Refresher on Cost of Capital

Last Completed Projects