Question: Fill the blanks Based on the given information, please fill the blanks in the following table. Part 1 is the capital structure of an unlevered
Fill the blanks Based on the given information, please fill the blanks in the following table. Part 1 is the capital structure of an unlevered firm vs a levered firm. Part 2 is the performance measures of the two firms under three economic conditions. Part 3 is the homemade leverage used by investors to buy unlevered firm but to reach the performance of levered firm.
| Current | Proposed | |
| Assets | 20000 | 20000 |
| Debt | 0 | 8000 |
| Equity | 20000 | 20000 |
| Debt/Equity Ratio |
|
|
| Interest Rate |
|
|
| number of shares | 8% | 8% |
| Share Price | 50 |
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