Financing with Debt
6 important questions on Financing with Debt
When do you use the WACC method? Give 3 situations
2. If you analyse multiple time periods, but the D/E ratio is constant
3. Firms in a steady state
Give the formula to calculate the NPV with the WACC
Give the formula for the FTE method
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What 4 financing side effects are considered in the APV?
2. The costs of issuing new securities
3. The costs of financial distress
4. Subsidies to debt financing
Give the formula of a levered firm
Give the formula of unlevered Beta in a world with taxes
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