'Your company has the following interest cost of equity (12%, 13%, 16%, 19%, 21%) at 100%,...

 

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'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) '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)

Answer rating: 100% (QA)

The optimal debt percentage for a project is the percentage that min... View the full answer