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Hi
In the BPP kit it says that you could have calculated the cost of equity by urn gearing and regearing the beta. Please can you show me the calculation as I did not get this part correct(in the solution they used MM which I find confusing)
Also please can you explain the calculation for subsidized loan and the tax relief part.
When calculating the PV of the tax shield do we PV at cost of debt or risk free rate. They said we can use both. Why?
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