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sir please can you give the caculation of how to find the equity beta for haizum co. ?
also i have 1 general question… in growth caculation g=br ,r is cost of return on investments..i am confused is it means cost of equity or cost of capital??Haizum’s cost of equity is 14%
This must be equal to Rf + Equity beta (Rm – Rf)
So…..14 = 4.5 + equity beta x 4
Equity beta = (14 – 4.5) / 4 = 2.375
With regard to the growth formula, r is the rate of return that the company gets on reinvestment (in theory this will be the cost of equity, but if you know the return on reinvestment then you use that)
DEAR SIR,
Regarding the question neptune why the timing of tax on operating flows differs from tax savings on capital allowances.Shouldn’t it normally be the same.Please can you provide a brief illustration.
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