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%).
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TRAMONT CO (PILOT PAPER)
9y ago#1The 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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