Question
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 level of the expected loss of your company?
What is the cost of equity of your company?
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The Oxford Handbook Of Pricing Management
Authors: Ozalp Ozer, Robert Phillips
1st Edition
0199543178, 978-0199543175
