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OpenStudy (anonymous):

Let's say we want to value a Brazilian firm in BZR, the risk free rate should be the difference between the brazilian bond rate and the default spread of said bond; and the risk premium should be the implied equity risk premium + CRP of brazil. Is this right?

OpenStudy (anonymous):

No it is not right. your risk free rate computation is correct but the implied equity risk premium incorporates the country risk premium and you don't need to add it

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