Suppose for an agribusiness firm, the leverage ratio is 1. The rate of return on asset is
Fantastic news! We've Found the answer you've been seeking!
Question:
Suppose for an agribusiness firm, the leverage ratio is 1. The rate of return on asset is normally distributed random variable with an average expectation of 15%, and a standard deviation of 3%. The cost of borrowing is fixed at 10%, over the term of the loan, the tax rate is 25% and the consumption rate is 60%. Calculate the coefficient of variation for this agribusiness.
8% | ||
1.8% | ||
3% | ||
5.6% |
Related Book For
Posted Date: