QULJHUI Suppose you borrow $45,472.85M when financing a gym which cost is at $92,815.9M. You expect to generate a cash flow of $61,386M at the end of the year if demand is weak, $88,950M if demand is as expected and $108,334M if demand is strong. Each scenario is equally likely. The current risk-free interest rate is 4% (risk of debt) and there's a 11% risk premium for the risk of the assets. What would be the return of equity if the demand is strong? (HINT: If you need it, to compute the WACC of the firm, add the risk free plus the risk premium) NOTE: Provide your answers in Percentages. E.G. for 10.15% you must enter 10.15, for 2.05% you must enter 2.05, etc. QUESTION 16 Suppose you borrow $45,991.04M when financing a gym which cost is at $93,247.26M. You expect to generate a cash flow of $62,550.18M at the end of the year if demand is weak, $92,341.96M if demand is as expected and $117,916.36M if demand is strong. Each scenario is equally likely. The current risk-free interest rate is 5.49% (risk of debt) and there's a 12.23% risk premium for the risk of the assets. What would be the return of equity if the demand is weak? (HINT: If you need it, to compute the WACC of the firm, add the risk free plus the risk premium) NOTE: Provide your answers in Percentages. E.G. for 10.15% you must enter 10.15, for 2.05% you must enter 2.05, etc. QULJHUI Suppose you borrow $45,472.85M when financing a gym which cost is at $92,815.9M. You expect to generate a cash flow of $61,386M at the end of the year if demand is weak, $88,950M if demand is as expected and $108,334M if demand is strong. Each scenario is equally likely. The current risk-free interest rate is 4% (risk of debt) and there's a 11% risk premium for the risk of the assets. What would be the return of equity if the demand is strong? (HINT: If you need it, to compute the WACC of the firm, add the risk free plus the risk premium) NOTE: Provide your answers in Percentages. E.G. for 10.15% you must enter 10.15, for 2.05% you must enter 2.05, etc. QUESTION 16 Suppose you borrow $45,991.04M when financing a gym which cost is at $93,247.26M. You expect to generate a cash flow of $62,550.18M at the end of the year if demand is weak, $92,341.96M if demand is as expected and $117,916.36M if demand is strong. Each scenario is equally likely. The current risk-free interest rate is 5.49% (risk of debt) and there's a 12.23% risk premium for the risk of the assets. What would be the return of equity if the demand is weak? (HINT: If you need it, to compute the WACC of the firm, add the risk free plus the risk premium) NOTE: Provide your answers in Percentages. E.G. for 10.15% you must enter 10.15, for 2.05% you must enter 2.05, etc
