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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What is optimal capital structure?
Is the net income of a year money the company made that given year or is this a number whose importance is quite doubtful?
I suppose that a valuation consciously realized in my name tells me how much I have to offer for the company, am I right?
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