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Dear Sir,
Just wondering for the calculation of moradas asset beta (0.94) under the first proposal, why the debt value of 126.4m is used instead of the new value of 25.6m?
Many thanks for your help, Justine
We have Morada’s equity beta at 1.2 which is the equity beta for the “whole organisation”. Hence, the asset beta will be for the whole organisation so, we use Market value of equity and market value of debt as the whole organisation (as calculated initially before any of the proposals).
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