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Sir,
how is the cost of equity calculated in this question?
I didnt understand the .2/.8 part in ke calculationThe answer has used the MM Proposition 2 formula (from the formula sheet), and the 0.2/0.8 is Vd/Ve
Thankyou very much sir.
I have another question regarding Chrysos.
Why is just the bank overdraft deducted from the value of the equity and not other liabilities?
Is it so because it is mentioned they are converted(VCO bond) and repaid?
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