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Pilot paper question one.. Calculating discount rate

Forums › ACCA Forums › ACCA AFM Advanced Financial Management Forums › Pilot paper question one.. Calculating discount rate

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  • October 18, 2015 at 11:26 pm #276934
    sameerah
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    For the calculation of discount rate, whys is the asset beta used in the following formula
    Risk free rate + beta(market premium)

    I thought it is the equity beta that has to be used.. In pilot paper question one market premium is multiplied with asset beta
    Please explain

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