We assumed that interest expense would be 10% of the beginning debt. Qualitatively, what would the impact on the financing need be, if we made the assumption instead that interest expense would be 10% of average debt? Explain your reasoning as to why?

Answer rating: 100% (QA)

If the assumption is changed from interest expense being 10 of the beginning debt to interest expense being 10 of average debt it would likely have an ... View the full answer