Question: Case 1 Case 2 $ 1000 $ 1000 $ 200 $ 600 Project cost a) Debt b) Equity c) Revenue from project d) Interest rate
Case 1 Case 2 $ 1000 $ 1000 $ 200 $ 600 Project cost a) Debt b) Equity c) Revenue from project d) Interest rate on debt $ 800 $ 400 $ 200 $ 200 5% 7% Question 3 When using the case of high leverage to finance project cost return on equity will equal 20%. ) 20 Select one: True False
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