a. Epsilon is taking out a low-interest-rate bank loan to finance construction of a number of stores

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a. Epsilon is taking out a low-interest-rate bank loan to finance construction of a number of stores in South Carolina. Upsilon is making a similar-risk investment in North Carolina, which it is financing with an issue of shares. Should Upsilon require a higher return than Epsilon on its investment?

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Principles Of Corporate Finance

ISBN: 9781264080946

14th Edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans

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