UNIBANCO. UNIBANCO estimated the weighted average cost of capital for Petrobrs to be 13.2% in Brazilian reais.

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UNIBANCO. UNIBANCO estimated the weighted average cost of capital for Petrobrás to be 13.2%

in Brazilian reais. Evaluate the methodology and assumptions used in the calculation.

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Multinational Business Finance

ISBN: 9781292270081

15th Global Edition

Authors: David Eiteman, Arthur Stonehill, Michael Moffett

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Question Posted: Jun 04, 2024 02:18 AM

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UNIBANCO. UNIBANCO estimated the weighted average cost of capital for Petrobrs to be 13.2% in Brazilian reais.

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Risk-free rate 4.5% Cost of debt (after-tax) 5.7% Beta 0.99 Tax rate 34% Market premium 6.0% Debt/total 40% capital Country risk premium 5.5% WACC (R$) 13.2% Cost of equity (US$) 15.9%

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Multinational Business Finance

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