yalo

I think the must know points for this topic is as follows:

1. Income taxes and net working capital are estimated at the nominal rate and then converted to real rate using an inflation index.

2. Capital expenditures, EBITDA and depreciation directly using the real rate.

3. Ratios calculated using the real rate cash flows are correct, nominal rate ones are not

4. Know why we should adjust cash flows to account for emerging country risks rather than the discount rate

5. Know how to calculate the componets of WACC for emerging markets.

All these are off the top of my head, feel free to add more.