Question 10 Problem 10: Assuming that the long-term USD risk-free rate is 3%, the global market risk premium is 5%. Firm Z is valuing a project in Thailand and finds that the operating beta of its Thai-based proxy firm is 2.43. The political exposure of the Thai project is assumed to be average and that the political risk premium for Thailand is 6%. What is Firm Z's hurdle rate for the Thai project based on the Damodaran Model?

Question 10 Problem 10: Assuming that the long-term USD risk-free rate is 3%, the global market risk premium is 5%. Firm Z is valuing a project in Thailand and finds that the operating beta of its Thai-based proxy firm is 2.43. The political exposure of the Thai project is assumed to be average and that the political risk premium for Thailand is 6%. What is Firm Z's hurdle rate for the Thai project based on the Damodaran Model?

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

ChapterP3: Part 3: Exchange Rate Risk Management

Section: Chapter Questions

Problem 4Q

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