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can you please explain how do we reach the results of the RETURN table? oint Presentation + vloads/11a-Capital Structure%20(9).pdf HEC Lausanne TEC m Moodle https://my.unil.ch/d.

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can you please explain how do we reach the results of the RETURN table?

oint Presentation + vloads/11a-Capital Structure%20(9).pdf HEC Lausanne TEC m Moodle https://my.unil.ch/d. Definition and Som 11 / 38 75% + Leverage and return Date 0 Present value Firm Debt Lev equity Date 1 Date 1 Strong Weak Expected economy economy value Cash-flows $1,400 $900 $1,150 $525 $525 $525 $875 $375 $625 Return 40% -10% 15% 5% 5% 5% 75% -25% 25% $1,000 $500 $500 Firm Debt Lev equity H 1 ENG US z o F6 EZ BH F9 710 E11 F12 5 5 7 8 9 ot

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