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The 2 inputs are thus the credit card debt ratio in overall cash as well as the relevant financial debt servicing Charge. The expense of personal debt for all of the divisions of MC is calculated utilizing the below two inputs;
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e. CAGR (compound typical growth return). A capital investor is really considering The web return gained yr soon after year, Consequently utilization of geometric is more ideal. Consequently we might use geometric ordinary for danger cost-free rate and risk quality for every with the 3 divisions, as offered in show 5 from the case.
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