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Assume the assets of your company worth 400,000 $ and their volatility is 30 % (cost of capital is 16 %). The book value of
Assume the assets of your company worth 400,000 $ and their volatility is 30 % (cost of capital is 16 %). The book value of debt is 350,000 $ with a maturity of 3 years. Your company pays 16 % taxes and the market shows the interest rate at the level of 4 %. equity equal to 125857.5692
What is the per-period cost of equity of your company? Eperiod=T1ln(EAeATN(d~1)EKN(d~2)) What is the cost of debt of your company? D=ADAN(d1)+rfDKerfTN(d2) What is the per-period cost of equity of your company? Eperiod=T1ln(EAeATN(d~1)EKN(d~2)) What is the cost of debt of your company? D=ADAN(d1)+rfDKerfTN(d2)
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