Suppose you have outstanding debt with anan 8.01% interest rate that can be repaid anytime, and the
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Suppose you have outstanding debt with anan 8.01% interest rate that can be repaid anytime, and the interest rate on U.S. Treasuries is only 4.99%. You plan to repay your debt using any cash that you don't invest elsewhere. Until your debt is repaid, what cost of capital should you use when evaluating a newrisk-free investment opportunity? Why
Related Book For
Principles of Corporate Finance
ISBN: 978-0077404895
10th Edition
Authors: Richard A. Brealey, Stewart C. Myers, Franklin Allen
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