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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
14.  Divestiture Decision. San Gabriel Corp. recently considered divesting its Italian subsidiary and de- termined that the divestiture was not feasible. The required rate of return on this subsidiary was
17 percent. In the last week, San Gabriel’s required return on that subsidiary increased to 21 percent. If the sales price of the subsidiary has not changed, explain why the divestiture may now be feasible.
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