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Nigeria Rating B- Country risk premium 11.51% Standard Deviation of Long term Gov bond 27.00% T-bills Gov (1 year $ Denominated) 7.90% US Beta Debt/Equity
Nigeria
Rating B-
Country risk premium 11.51%
Standard Deviation of Long term Gov bond 27.00%
T-bills Gov (1 year $ Denominated) 7.90%
US Beta Debt/Equity MV
T-bills US (1-year) 4.30% Olive Garden 1.60 0.45 2000
T-bonds US (10 years) 5.50% Red Lobster 1.50 0.35 1400
Default spread on B- rated countries 3.60% Steakhouse Outback 1.70 0.38 750
US Market risk premium 4.16% TGI 1.23 0.5 1200
US tax rate 21.00% Apple Bees 1.88 0.24 1500
Waffle House 1.01 0.63 3500
The information above was collected for the restaurant you want to open ina new country. based on teh above what is the beta that you should use to calculate the cost of capital?
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