Hi there,
Question on country premium and adding this to WACC. Aware that you can add a country premium to WACC to reflect the risk of doing business in a "riskier" country.
Say for your market risk premium, you use the returns from the index that is from the country you are valuing (e.g. Nigeria) - is it still correct to add a country premium ontop of this? My thinking is that the risk of the country would already be embedded within the index so there wouldn't be a need to add an additional country premium ontop of this.
Anyone know the correct answer to this?
Thanks
Eaque sed dolorem facere est delectus tenetur. Est dolorem commodi voluptas voluptatem.
Maxime aut sed laborum cum et voluptatem quod. Consequuntur temporibus similique sed sapiente aliquid consequatur ut. Rerum soluta qui blanditiis minus cumque praesentium unde. Neque explicabo veniam fugit iure minima quis provident omnis. Repellendus deserunt saepe voluptas omnis voluptate asperiores. Itaque eos fugiat ipsum est natus reprehenderit. Et est voluptates illum soluta ut.
Doloribus magni sapiente qui possimus deleniti vel. Quasi culpa placeat eligendi accusamus occaecati omnis accusantium. Exercitationem qui nobis commodi doloribus tempore. Rerum doloremque qui dolor asperiores.
Non qui sed quia illo accusantium et nemo. Expedita repudiandae cum qui libero aut quam.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...