I know nobody want to talk about this but what kind of calculations do you guys think we need to know for this shiat?

I think the important one is to calculate the real change in working capital, you must find the change in nominal working capital and divide it by 1 + inflation. Know that nominal cash flows discounted at the nominal rate will equal real cash flows discounted by the real rate. Calculate real WACC and I guess P/E with inflation flow through.

check the LOS – i think just risk premium

3 can you explain it. I kind of remember.

ok guys none of that freaking calculation from Schweser??

Ok this is what I came up with continuing value = FCFF(1+g)/WACC-g use either nominal or real but be consistent Adjusting cash flow is preferred than changing discount rate because: 1.Country risk is one sided 2Identifying cash flows is useful for management. 3. Companies are affected differently by country risk 4.Country risk are diversifiable COST Of CAPITAL rfr= 10yUs bond+ inflation differential beta= industry beta relative to a global market index pretax debt= local risk free + Us credit spread over comparable deb