Question
Q17.30 Work the example from Page 470 (sun [$100] with 3/4 probability, rain [$60] with 1/4 probability), if the debt promises 65 and offers an
Q17.30 Work the example from Page 470 (sun [$100] with 3/4 probability, rain [$60] with 1/4 probability), if the debt promises 65 and offers an expected rate of 3%. What is the weight of equity in the capital structure?
| Financing Scheme AE | Financing Scheme DE-1 | ||
| 100% Equity | Bond ( promisse $76) | Levered Equity (After $76 Bond) | |
| Prob ( Sun )=3/4 $100 | 100 | 76 | 24 |
| Prob ( Rain )=1/4 $60 | 60 | 60 | 0 |
| Future Payoff | 90 | 72 | 18 |
| Price P Now | 75 | 65 | 10 |
| Rate of Return | 20% | 10.77% | 80 |
| Financing Weight | 100% | 65/75 ~87% | 10/75 ~13% |
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Fanatical Prospecting The Ultimate Guide To Opening Sales Conversations And Filling The Pipeline By Leveraging Social Selling Telephone Email Text And Cold Calling
Authors: Jeb Blount, Mike Weinberg
1st Edition
1119144752, 978-1119144755
