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

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12. UNIBANCO. UNIBANCO estimated the weighted average cost of capital for Petrobrs to be 13.2% in Brazilian reais in its August 12, 2004, report. Evaluate the methodology and assumptions used in the calculation.

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Fundamentals Of Multinational Finance

ISBN: 9780321541642

3rd Edition

Authors: Michael H. Moffett, Arthur I. Stonehill, David K. Eiteman

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Question Posted: Jul 31, 2024 02:01 AM

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

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Risk-free rate 4.5% Cost of debt (after-taxes) 5.7% Beta 0.99 Tax rate Market premium 6.0% Debt/total capital 40% Country risk premium WACC (RS) 13.2% Cost of equity (US$) 15.9% Exchange rate 2.0% Cost of equity (R$) 18.3%

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Fundamentals Of Multinational Finance

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