Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

'Your company has the following interest cost of equity (12%, 13%, 16%, 19%, 21%) at 100%, 60%, 40%, 10% and 0% and may get 100%

'Your company has the following interest cost of equity (12%, 13%, 16%, 19%, 21%) at 100%, 60%, 40%, 10% and 0% and may get 100% project loans at 16% and 10% or less project loans at 10%. Calculate the optimal debt % for any project? Answer example: 50% Assume straight lines between given points.' EquityCost <- c(0.14,0.14,0.15,0.16,0.21) percentagesE <- c(0,0.1,0.4,0.6,1) # Actually (1-%E) debtCost <- c(0.1,0.1,0.1,0.1,0.16) percentagesD <- c(0,0.1,0.4,0.6,1)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Project Finance

Authors: E. R. Yescombe

2nd Edition

0123910587, 9780123910585

More Books

Students also viewed these Finance questions

Question

Be able to schedule and conduct a performance appraisal interview

Answered: 1 week ago

Question

Know the two most common approaches to appraisal timing

Answered: 1 week ago