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Trying to calculate B(d). Formula given as debt risk premium/market risk premium, but I don't know how to calculate debt risk premium. R Market Risk
Trying to calculate B(d). Formula given as debt risk premium/market risk premium, but I don't know how to calculate debt risk premium.
R Market Risk Premium 5.45% 6.00% 10-year treasury rate . Cost of Debt Bo Bd = Debt risk premium / Market Risk Premium (from the CAPM) Comparable Franklin Toaster Ohio Toaster Superior Toasters AVERAGE YTM 6.70% 7.25% 6.50% 6.82% DN 0.33 0.59 0.60 50.67% #DIV/0Step by Step Solution
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Principles Of Corporate Finance
Authors: Richard Brealey
10th Global Edition
0071314172, 9780071314176
