Question: For calculations please round your final answer to two decimal places, round any intermediary calculations to four decimal places. The table below details the term

For calculations please round your final answer to two decimal places, round any intermediary calculations to four decimal places.

The table below details the term structure of interest rates as at 01 January 2020.

\fmm a... F... 1. Company X has to pay $50,000 interest expense every year if debt is issued, but it only has an operating cash ow of $40,000 per year. 2. Company A decides to raise funds through debt issue. However, it operates in Video Rental industry which is said to be a declining industry. 3. Company Y decides to issue debt, but its management is less credible with poor track records

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