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What rate of return shareholders of a company would expect, if the company is planning to finance its assets worth $5million by 60% equity and
What rate of return shareholders of a company would expect, if the company is planning to finance its assets worth $5million by 60% equity and 40% debt at an interest rate of 15% per annum? The assets are expected to generate earnings before interest of $750,000 per annum in perpetuity.
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