This assignment delves into the complexities of international and financial management within the context of mergers and acquisitions (M&A). Using Banco company as a case study, it investigates the influence of cost of capital on the firm's post-acquisition performance. The analysis explores factors under the control of the acquiring company, such as capital structure policies and dividend payouts, alongside external influences like interest rates and tax policies. Ultimately, the report aims to shed light on the critical considerations for effective financial management during M&A transactions.