A firm is funded with $2 million of loans and $6 million of equity.
The interest rate on the loans is 8% pa. The cost of equity is estimated to be 20% pa. The corporate tax rate is 30% pa.
Which of the below statements is NOT correct? The:
A firm is funded with $2 million of loans and $6 million of equity.
The interest rate on the loans is 8% pa. The cost of equity is estimated to be 20% pa. The corporate tax rate is 30% pa.
Which of the below statements is NOT correct? The: