Taxes and costs. You need $530,000 and have decided to get it either from bank debt or
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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 0.35, the riskfree rate is 1.75%, and the market risk premium is 7.45%. If your tax rate is 21%, at what rate would you be better off getting bank debt?
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Related Book For 
Applied Corporate Finance Making Value Enhancing Decisions In The Real World
ISBN: 9783030816308
2nd Edition
Authors: Mark K. Pyles
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