Question
Fiat Chrysler Inc needs $1,358,414,850 to finance a project. 50% of the financing ($679,207,425) will be done through a loan from ABC Bank. Develop the
Fiat Chrysler Inc needs $1,358,414,850 to finance a project. 50% of the financing ($679,207,425) will be done through a loan from ABC Bank. Develop the following:
-An interest rate and length of loan
-Repayment Schedule and a Summary of Total Interest Paid (amortization schedule)
The remaining 50% ($679,207,425) will be financed through equity as a 2:1 stock split. What will be the cost of equity?
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Cases in Finance
Authors: Jim DeMello
3rd edition
1259330476, 1259330478, 9781259352652 , 978-1259330476
