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Suppose you borrow $43618.56M when financing a gym with a cost of $88484.41M. You expect to generate a cash flow of $77626.98M at the end
Suppose you borrow $43618.56M when financing a gym with a cost of $88484.41M. You expect to generate a cash flow of $77626.98M at the end of the year if demand is weak, $97727.02M if demand is as expected and $116243.03M if demand is strong. Each scenario is equally likely. The current risk-free interest rate is 5.37% (risk of debt) and there's a 12.60% risk premium for the risk of the assets. What would be the realized return of equity if the demand is weak
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