The 2 inputs are As a result the debt ratio in whole money as well as the relevant credit card debt servicing Price tag. The cost of credit card debt for each of the divisions of MC is calculated utilizing the down below two inputs;
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e. CAGR (compound average advancement return). A capital Trader is definitely keen on the net return gained 12 months immediately after year, So use of geometric is more suitable. For this reason we'd use geometric typical for risk cost-free level and chance quality for each of the three divisions, as supplied in show 5 of your case.
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