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The nominal cost of capital is 11%. The expected annual rate of inflation is 5%. What is the real cost of capital?

Accounting Financial Management
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Question added by Muhammad Rehan Tahir ACCA , Treasury Manager , Farouk, Maamoun Tamer & Company
Date Posted: 2015/04/27
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Muhammad Ramzan Tufail ACCA
by Muhammad Ramzan Tufail ACCA , Assistant Finance Manager , Eltizam Asset Management Group

Real Cost of Capital =5.71 % 

 

Thanx....

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