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Next period a firm will be worth $58 with 15% probability, $90 with 52% probability, and $155 otherwise. the firm has one senior bond outstanding
Next period a firm will be worth $58 with 15% probability, $90 with 52% probability, and $155 otherwise. the firm has one senior bond outstanding with a face value of $34 and one junior bond outstanding with a face value of $38. the senior bond had a promised return of 4%. the junior bond has a promised return of 12%. The firm's required return on asset's is 15%. what is the firm's levered cost of equity? give your answer in percentage to the nearest 0.1%
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