Compute a company's cost of capital in emerging nations
How can we compute a company's cost of capital in emerging nations, particularly when there is no state bond that we could take as a reference?
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However, there is no state bond whose flows could be seemed “risk-free,” the needed return to shares is an issue of common sense (here experience also helps): this is the rate at which we compute the present value of flows, considering the risk.
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When valuing the shares of my company, I calculate the present value of the expected cash flows to shareholders moreover I add to the result obtained cash holdings and liquid investment. Is that correct?
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Baldwin Corporation is planning to expand into the business of providing on-demand movies. Baldwin has debt-to-equity ratio of .25, its pretax cost of debt is 9%, and its marginal tax rate is 40%. The Harrington Corporation is already in the on-demand movie business,
Regarding the WACC which has to be applied to a project, must it be an expected return, the average historical return or an opportunity cost on similar projects?
Which currency has to be utilized in an international acquisition in order to compute the flows?
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Is there any indisputable model for valuing the brand of a company?
You have joined Zurich Pvt. Ltd as a Finance manager. You are given the following information: Zurich Pvt Ltd. is a diversified manufacturing firm dealing with electrical appliances. In 2012, the firm reported an operating income of Rs. 857.60 million and faced a tax rate of 35% on income. The firm
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