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In 1992,the Enron Development Corporation,a Subsidiary of the Houston-Based Energy

Question 82

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In 1992,the Enron Development Corporation,a subsidiary of the Houston-based energy company,signed a contract to build the largest-ever power plant in India,requiring a total investment of $2.8 billion.After Enron had spent nearly $300 million,the project was canceled by Hindu nationalist politicians in the Maharashtra state where the plant was to be built.Which of the following is(are) true?


A) Upon the news release of the project cancellation,Enron's share price fell immediately by about 10 percent.
B) In the process of structuring the deal,Enron made a profound political miscalculation: Instead of waiting for the next election results,Enron rushed to close the deal and began construction,apparently believing that a new government would find it difficult to unwind the deal when construction was already under way.
C) Enron had the last laugh,however when they went bankrupt and left the power plant unfinished.
D) all of the options

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