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Suppose you borrow $53,389.48M when financing a gym which cost is at $89.582.11M. You expect to generate a cash flow of $51,245M at the end
Suppose you borrow $53,389.48M when financing a gym which cost is at $89.582.11M. You expect to generate a cash flow of $51,245M at the end of the year if demand is weak, 585,233.32M if demand is as expected and 119,032.85M if demand is strong. Each scenario is equally likely. The current risk-free interest rate is 4.389 (risk of debt) and there's a 12.48% risk premium for the risk of the assets. What would be the realized return of equity if the demand is strong? 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 $53,389.48M when financing a gym which cost is at $89.582.11M. You expect to generate a cash flow of $51,245M at the end of the year if demand is weak, 585,233.32M if demand is as expected and 119,032.85M if demand is strong. Each scenario is equally likely. The current risk-free interest rate is 4.389 (risk of debt) and there's a 12.48% risk premium for the risk of the assets. What would be the realized return of equity if the demand is strong? 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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