14. Citigroup Smith Barney (reais). In a report dated June 17, 2003, Citigroup SmithBarney calculated a WACC

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14. Citigroup Smith Barney (reais). In a report dated June 17, 2003, Citigroup SmithBarney calculated a WACC for Petrobrs denominated in Brazilian reais (R$). Evaluate the methodology and assumptions of this cost of capital 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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14. Citigroup Smith Barney (reais). In a report dated June 17, 2003, Citigroup SmithBarney calculated a WACC

Question:

Risk-free rate (Brazilian C-Bond) 9.9% Petrobrs levered beta Market risk premium 20 5.5% Cost of equity 17.6% Cost of debt 10.0% Corporate tax rate 34.0% Long-term debt ratio 50.6% WACC (RS) 12.0%

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Fundamentals Of Multinational Finance

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