You are trying to estimate the ERP for Vortex, a U.S. company that derives 80% of its
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You are trying to estimate the ERP for Vortex, a U.S. company that derives 80% of its revenues in Brazil and 20% in the U.S. The estimated ERP for the U.S. is 5%, the sovereign CDS spread for Brazil is 2%, and you estimate that equities in Brazil are 1.25 times more volatile than U.S. government bonds. What ERP will you use for Vortex?
Related Book For
Financial Management for Decision Makers
ISBN: 978-0138011604
2nd Canadian edition
Authors: Peter Atrill, Paul Hurley
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