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johnpaech johnpaech
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Posts: 1098
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6 years ago
Suppose that to raise the funds for the initial investment the firm borrows $80,000 at the risk free rate, then the cash flow that equity holders will receive in one year in a strong economy is closest to:
A) $0
B) $6000
C) $33,000
D) $10,000
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
Authors:
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wrote...
6 years ago
C
Explanation:  C) $117,000 - $80,000(1.05) = $33,000
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