Académique Documents
Professionnel Documents
Culture Documents
Winter 2004
Multinational Capital Budgeting
2
Multinational Capital Budgeting
3
Complexities of Budgeting for a Foreign Project
4
Complexities of Budgeting for a Foreign Project
5
Project versus Parent Valuation
6
Project versus Parent Valuation
7
Illustrative Case: Cemex Enters Indonesia
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Illustrative Case: Cemex Enters Indonesia
9
Illustrative Case: Cemex Enters Indonesia
10
Illustrative Case: Cemex Enters Indonesia
11
Illustrative Case: Cemex Enters Indonesia
Financial Assumptions
12
Illustrative Case: Cemex Enters Indonesia
Financial Assumptions
Financing: 50% equity, all from Cemex, and 50% debt, 3/4
from Cemex and 1/4 from a group of Indonesian banks.
Cemex’s U.S. dollar WACC is 11.98%.
Cemex’s WACC in local Indonesian terms was estimated at
33.26%.
13
Illustrative Case: Cemex Enters Indonesia
Financial Assumptions
14
Illustrative Case: Cemex Enters Indonesia
Financial Assumptions
15
Illustrative Case: Cemex Enters Indonesia
Financial Assumptions
16
Illustrative Case: Cemex Enters Indonesia
Financial Assumptions
17
Illustrative Case: Cemex Enters Indonesia
Financial Assumptions
18
Illustrative Case: Cemex Enters Indonesia
Financial Assumptions
19
Illustrative Case: Cemex Enters Indonesia
Financial Assumptions
20