case study solution Options
case study solution Options
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The 2 inputs are thus the financial debt ratio in total money and also the relevant credit card debt servicing cost. The expense of financial debt for each of the divisions of MC is calculated utilizing the down below two inputs;
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e. CAGR (compound regular progress return). A capital investor is in fact considering The online return obtained year just after calendar year, Hence use of geometric is much more useful site appropriate. Hence we'd use geometric common for threat totally free rate and threat top quality for every with the a few divisions, as given in exhibit five of the case.
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