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Suppose you would like to be able to invest in the firm if they had the capital structure above with a 1 0 . 3
Suppose you would like to be able to invest in the firm if they had the capital structure above with a return on the common stock and a WACC of If you have $ to invest, how much should you invest in the stock and bonds of the original firm which have returns of and respectively to obtain the same return as an investment in the stock of the firm if it had $ million of debt and $ million of equity? Enter your answers rounded to DECIMAL PLACES. Amount into equity Amount into debt
Suppose you would like to be able to invest in the firm if they had the capital structure above with a return on the common stock and a WACC of If you have $ to invest, how much should you invest in the stock and bonds of the original firm which have returns of and respectively to obtain the same return as an investment in the stock of the firm if it had $ million of debt and $ million of equity? Enter your answers rounded to DECIMAL PLACES.
Amount into equity
Amount into debt
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