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What is the current return on capital

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Al Qassimi Imports reported EBIT of AED 75 M last year. For the next 5 years EBIT is expected to grow 7.5% a year, after which it is expected to slow to a steady 4%. The company has a beta of 0.8 and the AED is pegged to the USD. The tax rate is 25%, whilst the reinvestment rate was 75%

What is the current Return on Capital

What will be the future reinvestment rate if ROC remains unchanged

What is the terminal Value of EBIT in the 5th year?

What is the present value of the firm

Briefly, if the AED was to unpeg, how would that change the cost of capital

Reference no: EM132554553

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