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Suppose you borrow $37.263.14M when financing a gym which cost is at $89.990.13M. You expect to generate a cash flow of $76,754.93M at the end

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Suppose you borrow $37.263.14M when financing a gym which cost is at $89.990.13M. You expect to generate a cash flow of $76,754.93M at the end of the year if demand is weak $89,031.34M if demand is as expected and $115,254.31M if demand is strong. Each scenario is equally likely. The current risk- free interest rate is 5.11% (risk of debt) and there's a 3.8% risk premium for the risk of the assets. What should the value of the equity be? CHINT: If you need it, to compute the WACC of the firm, add the risk free plus the risk premium) Suppose you borrow $37.263.14M when financing a gym which cost is at $89.990.13M. You expect to generate a cash flow of $76,754.93M at the end of the year if demand is weak $89,031.34M if demand is as expected and $115,254.31M if demand is strong. Each scenario is equally likely. The current risk- free interest rate is 5.11% (risk of debt) and there's a 3.8% risk premium for the risk of the assets. What should the value of the equity be? CHINT: If you need it, to compute the WACC of the firm, add the risk free plus the risk premium)

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