Assuming the expected cash flows and cost of capital

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Reference no: EM131180013

A valuation on an agricultural company in Australia has just been performed as part of a bigger assignment. This is a follow up question, it needs to address foreign investment, such as change in buying power, risk etc. Mostly in terms of economics, but this is part of a finance unit.

Assuming the expected cash flows and cost of capital you use in arriving at your estimate of the maximum value of the company is accurate, do you think a foreign investor should use the same cash flows and cost of capital? Justify your answer.

Reference no: EM131180013

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