India's sovereign bond rating was Baa3 in 2013, implying a 4% margin of default. The Indian government

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India's sovereign bond rating was Baa3 in 2013, implying a 4% margin of default. The Indian government issued 10-year rupee bonds at the time, yielding 12.25%. The risk premium for US equities was 6%.

What is the equity risk premium for India?

What is the cost of capital for a 100% Indian company with a beta of 2 for the Indian stock market?

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Foundations of Financial Management

ISBN: 978-1259024979

10th Canadian edition

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta

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Posted Date: Jul 20, 2023 07:14 AM

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India's sovereign bond rating was Baa3 in 2013, implying a 4% margin of default. The Indian government

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To calculate the equity risk premium for India we need to use the formula for the cost of equity ... View the full answer

Foundations of Financial Management

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