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please urgentttt fast!! malysis? (16 ect that w Alu ABCIN 12. ALBSTAR and BAM are both looking to purchase the asset that costs $500,000. ALBSTAR
please urgentttt fast!!
malysis? (16 ect that w Alu ABCIN 12. ALBSTAR and BAM are both looking to purchase the asset that costs $500,000. ALBSTAR plans to finance 10% with equity (own funds) and take a $450,000 loan (cost is 7% annually). BAM wants to purchase the asset for $500,000 financed fully with equity. Who will realize a higher return on equity if they sell the asset for $550,000 a year from today? At what price should the asset sell a year from today so that ALBSTAR and BAM have the same return on equity? What is the debt-to-equity ratio of ALBSTAR and BAM? (10 points) Step by Step Solution
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