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7. Mobi-SA (South Africa). Mobi-SA is a large mobile phone provider based in South Africa. It has not entered the Nigerian marketplace yet, but is
7. Mobi-SA (South Africa). Mobi-SA is a large mobile phone provider based in South Africa. It has not entered the Nigerian marketplace yet, but is considering establishing network and distribution facilities in Nigeria through a wholly owned subsidiary. It has approached two different investment banking advisors, Standard Chartered Bank of South Africa and First Bank of Nigeria, for estimates of what its costs of capital would be several years into the future when it planned to list its Nigerian subsidiary on the Nigerian stock exchange. Using the following assumptions by the two different advisors, calculate the prospective costs of debt, equity, and the WACC for Mobi-SA. Using the following assumptions by the two different advisors, calculate the prospective costs of debt, equity, and the WACC for Mobi-SA
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