Equity - Metev Q2

CFA Level II Equities
#1

I’m pretty sure I’m missing something obvious here but in Q2 of the Metev Equity Vignette, how are they deriving the LT growth rate of 5%?

#2

For question we are using CCM to find the cap rate and 5% is given in exhibit 3.CCM is a single stage model.

P0=Cashflow(1+g)/r-g

#3

Hey thanks - I understand the CCM but I don’t understand where the 5% growth rate is coming from? In the exhibit I only see the Bulgarian Bond yield, Industry Beta, ERP, Size prem., Industry prem., and a company specific premium. Is the growth rate derived from these?

#4

Somewhere down below there is a bit that says long term growth rate. There are like 4 different squares of info on it and i think its the last one on one of them

#5

cap = r - g

and yeah, it says it in the last cell at bottom of page

#6

in 2012 afternoon paper, why is accounts payable (along with notes payable & long-term debt which I understand) deducted from the value of the firm deduced from CCM method as well?

thank you.

#7

Crap when I copied it to Word it cut off the very last cell - thanks for the help hahah