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Suppose you borrow $53.064.66M when financing a sym which cost is at $88.949.76M. You expect to generate a cash flow of $58.004.34M at the end
Suppose you borrow $53.064.66M when financing a sym which cost is at $88.949.76M. You expect to generate a cash flow of $58.004.34M at the end of the year if demand is weak $92.505.58M if demand is as expected and $110,827.48M if demand is strong. Each scenario is equally likely. The current risk- free interest rate is 4.58% (risk of debt) and there's a 10.43% risk premium for the risk of the assets. What is the expected return of equity? CHINT: 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. Suppose you borrow $53.064.66M when financing a sym which cost is at $88.949.76M. You expect to generate a cash flow of $58.004.34M at the end of the year if demand is weak $92.505.58M if demand is as expected and $110,827.48M if demand is strong. Each scenario is equally likely. The current risk- free interest rate is 4.58% (risk of debt) and there's a 10.43% risk premium for the risk of the assets. What is the expected return of equity? CHINT: 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
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