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You start a business expecting to generate a year-end cash flow of $1.3 million. An equity investor offers you $980,000 for the business at the
You start a business expecting to generate a year-end cash flow of $1.3 million. An equity investor offers you $980,000 for the business at the beginning of the year. What is the cost of unleveraged equity? (Enter using 2 decimal places or more: Example; 1.234\% entered as 1.234;12.345% entered as 12.345 ) Margin of Error =0.1 Question 19 5 pts From Question 18, you decide to finance the business with $500,000 of debt at 8% interest. The tax rate is 32%, and the targeted capital structure ratio is 51/49. What is the cost of leveraged equity? (Enter using 2 decimal places or more: Example; 1.234\% entered as 1.23;12.34% entered as 12.35 ) Margin of Error =0.1
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