Question: Case 1 Case 2 $ 1,000 $1,000 $ 600 Project cost a) Debt b) Equity c) Revenue from project d) Interest rate on debt $

Case 1 Case 2 $ 1,000 $1,000 $ 600 Project cost a) Debt b) Equity c) Revenue from project d) Interest rate on debt $ 200 $ 800 $ 400 $ 200 $ 200 5% 7% Question 1 When using the case of low leverage to finance project cost, the interest payable will equal $10. 10 Select one: True False

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