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TRAMONT CO (PILOT PAPER)

This topic has 1 reply, 2 voices, and was last updated 8 years ago by John Moffat.

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November 10, 2016 at 5:10 pm #348356
accalegend
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In the workig 6 “GAMALA project all-equity financed discount rate”, why was the calculation of asset beta based on the corporate tax rate of TRAMONT homeland (30%) if the investment was in Gamala (20%).
November 10, 2016 at 7:06 pm #348369
John Moffat
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The all-equity beta (i.e the asset beta) is calculated from the current equity beta of Tramont. Therefore for the formula we use the current gearing of Tramont and the tax rate in Tramont’s country.
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