A 17% rate of return is required on a certain asset. The acquisition of that asset is

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A 17% rate of return is required on a certain asset. The acquisition of that asset is financed entirely by equity. What rate of return do shareholders require on it? If the asset were financed entirely by debt, what rate of return would lenders require on it?

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Corporate Finance Theory And Practice

ISBN: 9780470721926

2nd Edition

Authors: Pierre Vernimmen, Pascal Quiry

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