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CELLULAR AFRIKA COST OF CAPITAL

beta 1.2 exhibit 12


risk free rate on SA bonds 16.00% SA
equity premium 7% SA
ROE 24.40% 16+1.2*7
pretax debt rate 16.70% pg 9
tax rate 35% pg 13
after tax debt rate 10.86%
debt/value ratio 29% pg 16
WACC 20.48% 24.40*71%+10.86*29%
p stock none

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