Let's say a company whose shares are worth 1 million euros. The expected return on equity is

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Let's say a company whose shares are worth 1 million euros. The expected return on equity is 10%. The return on debt is 4%.

The WACC of the sector is 8%. What about the debt of this firm (its amount)?

Related Book For answer-question

Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

ISBN: 978-1337614689

9th edition

Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

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Posted Date: Mar 11, 2023 01:25 AM

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Let's say a company whose shares are worth 1 million euros. The expected return on equity is

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To calculate the debt of the firm we can use the weighted average cost of capital WACC formula WACC ... View the full answer

Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

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