Problem: A US manufacturing organization is planning to extend operations into Canada. I am needing help conducting a sensitivity analysis, based on the following "what if" scenarios:
Q1. What if funds are blocked? How does this affect the parent company?
Q2. From the perspective of the subsidiary, what if the subsidiary provided the funds?
Q3. How does the source of capital affect the subsidiary and the parent company?
Q4. . What source(s) of capital would minimize the cost of capital to the subsidiary?