Question
In the new equity part of the calculation, where does the 6,500,000 in the formula come from? ( 60,000,000+6,500,000). Thanks In the third part of
In the new equity part of the calculation, where does the 6,500,000 in the formula come from? ( 60,000,000+6,500,000). Thanks
In the third part of the question, we are asked to calculate the new levered beta after the change in capital structure. I follow the step by step for the question until I get to step 3, and see the calculation for new equity, and am unsure of where the 6,500,000 comes from.
This is in reference to problem (https://www.chegg.com/homework-help/questions-and-answers/kodiak-corp-currently-60-000-000-equity-using-market-values-debt-equity-ratio-15-current-l-q105635243)
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