quot;Globalizing the Cost of Capital and Capital Budgeting

quot;Globalizing the Cost of Capital and Capital Budgeting

“Globalizing the Cost of Capital and Capital Budgeting at AES”1: What were the risk factors that AES had come across in developing markets? In what way did these factors influence the company?2: Describe the systematic and unsystematic risks in general. Give examples of systematic and unsystematic risks from the case.3: What are the possible consequences of accepting inaccurate methodology of computing cost of capital on AES?

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