You are valuing a U.S. manufacturing firm that generates 50% of its revenues in $US...
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You are valuing a U.S. manufacturing firm that generates 50% of its revenues in $US and 50% of its revenues in Euros. To complete the valuation, you have decided to convert all of the cash flows to Euros.The yield on long-term U.S. Government Treasury Bonds is 1.9% and the yield on long-term Euro-denominated Government Bonds issued by Germany is 0.7%. You assume both rates are risk free. Which of the above rate would you use? Explain
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