Question
Case Study 2-A Download Case Study A, take all provided assumptions as given to complete the financial model and answer the following 7 questions. StartupCo
Case Study 2-A
Download Case Study A, take all provided assumptions as given to complete the financial model and answer the following 7 questions.
StartupCo commenced operations at the beginning of 2020. $125 million of equity was raised to fund the purchase of equipment as well as for general corporate purposes. As part of its business planning process, a 5-year forecast was developed (Base Case) as well as upside and downside scenarios (High and Low Cases, respectively). At the end of 2020, StartupCo issued $150 million of 5-year debt, repayable in equal annual installments at the end of each year, to finance its future capital program.
7 Using the Base Case, calculate the ROE in 2022E.
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5.50%
5.10%
4.20%
4.50%
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