Three corporations Aashman Shumaila Fahim are identical and each has total assets of 1000 million Ashman is 1009% loan finance Shumaila has 09% interest bring debts and Fahim is equity is equal to value of assets. Tax rate is 50% on earning if the economics environment is goods all three firm  operating income 1000 under average and poor economics environments operating income will be 500 and 250 million respectively. 

Required 

1. Find out the interest rate when discount rate is 15%?

2. Find out the value of financial charges of all three companies?

Answer rating: 100% (QA)

1 To find out the interest rate when the discount rate is 15 we need to use the weighted average cos... View the full answer