Taxes and costs You need $530,000 and have decided to get it either from bank debt or
Question:
Taxes and costs You need $530,000 and have decided to get it either from bank debt or from issuing equity. The beta on your firm is .35, the risk-free rate is 1.75 %, and the market risk premium is 7.45 %. If your tax rate is 35 %, at what rate would you be better off getting bank debt?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Applied Corporate Finance Questions Problems And Making Decisions In The Real World
ISBN: 9781493952991
1st Edition
Authors: Mark K. Pyles
Question Posted: