Introduction

With respect to the Nextel Peru for Emerging Market Cost of Capital, it is crucial to understand the cost of capital based on the beta and the required return of the assets. In case of Peru market, there is a Risk Free Rate of Return which is calculated (Melo, 2020; Okofo-Dartey, 2019). The same is being done. By taking the average of the yields for the regulated assets. The Peruvian Market has to consider the assets over the 30 year period (Cracau & Lima, 2019). With the 4.95% market risk premium attached, this tends to the 10.6%. the calculation is primarily for the Peru Equity market premium (Cracau & Lima, 2019). The risk premium does prevail in the market. The Latin equity beta is also worth considering in the market. The MCSI Emerging Markets Latin America Index does capture the mid cap representation and this is done across the five crucial emerging markets. The Emerging Markets prevail in case of Latin America. With the 93 constituents, there is the index cover that is available too (Melo, 2020; Okofo-Dartey, 2019). The free float adjustment considers the market capitalization. The index performance based on the gross returns is significant to understand (Cracau & Lima, 2019). The risk premium does prevail in the market. The Latin equity beta is also worth considering in the market.

The market return of Peru is being calculated based on the average of the available market return and the data of the Peru can be considered based on the risk free rate. It is considered as the data yield and can be multiplied with the beta. Post this, the addition of the number to the risk free rate is carried out to determine the exact. The cost of the equity is based on the market return of Peru (Cracau & Lima, 2019). The estimated asset beta can be well computed. The necessity to do so is based on the beta of the company and the evaluation of the unsystematic risk is prevalent with the diversified control of the asset. The beta of the company can be well computed based on the same logic. it is significant to understand the cost of capital based on the beta and the required return of the assets. In case of Peru market, there is a Risk Free Rate of Return which is calculated (Melo, 2020; Okofo-Dartey, 2019). The same is being done. By taking the average of the yields for the regulated assets. The Asset beta calculation can be done when the beta stands to be the lowest. The asset beta is computed with the risk exposure prevailing in case of the various companies. The market risk or the unsystematic risk is significant to understand in such a case (Cracau & Lima, 2019). The beta asset is calculated primarily taking into account the Global Market Returns that are applicable in case of the United States Market. Post this, the addition of the number to the risk free rate is carried out to determine the exact (Cracau & Lima, 2019). The cost of the equity is based on the market return of Peru. The estimated asset beta can be well computed. The necessity to do so is based on the beta of the company and the evaluation of the unsystematic risk is prevalent with the diversified control of the asset (Melo, 2020; Okofo-Dartey, 2019). The company stock can be well considered to be volatile in case of the Peru market. The reason for the same is the consideration of the beta asset with respect to the Nextel Peru Return. The cost of the debt too needs to be computed. The same is done based on the analysis and the quarter availability of the data is reliant to the case (Cracau & Lima, 2019). The WACC computation is simpler and the same can be well carried out. This will be reliant on the consideration of the CAPM too, that of the Nextel Peru. The Cost of Weight and the Cost of Debt has to be considered as well. In case of Peru market, there is a Risk Free Rate of Return which is calculated. The same is being done. By taking the average of the yields for the regulated assets (Cracau & Lima, 2019). The Asset beta calculation can be done when the beta stands to be the lowest. The asset beta is computed with the risk exposure prevailing in case of the various companies (Melo, 2020; Okofo-Dartey, 2019). The market risk or the unsystematic risk is significant to understand in such a case. The discounted free cash flows in case of the Peru is computed. This is reliant on the Discounted Cash Flows and the approach is significant to understand. Even the depreciation for the assets in case of the Peru market needs to be well comprehended (Cracau & Lima, 2019). The terminal value, that will stand, that of the company can be well determined. The forecast is based on the same values. The assessment is based on the Discounted Cash Flows. The acquisition price of Nextel Peru can be determined (Cracau & Lima, 2019).

Conclusion

With the above factors that are taken into consideration, it can be concluded that it is not a favourable market (Melo, 2020; Okofo-Dartey, 2019). By taking the average of the yields for the regulated assets. The Peruvian Market has to consider the assets over the 30 year period (Melo, 2020; Okofo-Dartey, 2019). With the 4.95% market risk premium attached, this tends to the 10.6%. the calculation is primarily for the Peru Equity market premium. The risk premium does prevail in the market. The Latin equity beta is also worth considering in the market (Cracau & Lima, 2019). The MCSI Emerging Markets Latin America Index does capture the mid cap representation and this is done across the five crucial emerging markets. The Emerging Markets prevail in case of Latin America. With the 93 constituents, there is the index cover that is available too. The cost of the equity is based on the market return of Peru (Cracau & Lima, 2019). The estimated asset beta can be well computed. The necessity to do so is based on the beta of the company and the evaluation of the unsystematic risk is prevalent with the diversified control of the asset (Melo, 2020; Okofo-Dartey, 2019). The beta of the company can be well computed based on the same logic. it is significant to understand the cost of capital based on the beta and the required return of the assets. In case of Peru market, there is a Risk Free Rate of Return which is calculated. The same is being done. By taking the average of the yields for the regulated assets (Cracau & Lima, 2019). The Asset beta calculation can be done when the beta stands to be the lowest. Even the depreciation for the assets in case of the Peru market needs to be well comprehended. The terminal value, that will stand, that of the company can be well determined.

References

Cracau, D., & Lima, J. E. D. (2019). Trade and Investment Relations in the Pacific Alliance: Recent Developments and Future Trends. The Pacific Alliance in a World of Preferential Trade Agreements, 29-64.

Melo, L. M. M. C. D. Internet regulation and development: the battle over the network neutrality (Doctoral dissertation, Universidade de São Paulo).

Okofo-Dartey, E. (2019). Drivers of mergers and acquisitions and firm value growth in emerging markets (Doctoral dissertation).