Cap Struct Games

Cap Struct Games - IRR 10.0% YTM Debt/Asset Debt/Equity...

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IRR 10.0% YTM Debt/Asset Debt/Equity Debt/Asset r-debt r-equity WACC 0.00 0% 0.00 5.0% 10.0% 0.1 0.05 5% 0.05 5.005% 10.3% 0.1 0.10 11% 0.10 5.015% 10.6% 0.1 0.15 18% 0.15 5.030% 10.9% 0.1 0.20 25% 0.20 5.050% 11.2% 0.1 0.25 33% 0.25 5.075% 11.6% 0.1 0.30 43% 0.30 5.105% 12.1% 0.1 0.35 54% 0.35 5.140% 12.6% 0.1 0.40 67% 0.40 5.180% 13.2% 0.1 0.45 82% 0.45 5.225% 13.9% 0.1 0.50 100% 0.50 5.275% 14.7% 0.1 0.55 122% 0.55 5.330% 15.7% 0.1 0.60 150% 0.60 5.390% 16.9% 0.1 0.65 186% 0.65 5.455% 18.4% 0.1 0.70 233% 0.70 5.525% 20.4% 0.1 0.75 300% 0.75 5.600% 23.2% 0.1 0.80 400% 0.80 5.700% 27.2% 0.1 0.85 567% 0.85 5.900% 33.2% 0.1 0.90 900% 0.90 6.250% 43.8% 0.1 0.95 1900% 0.95 7.500% 57.5% 0.1 1.00 #DIV/0! #DIV/0! 10.000% #DIV/0! #DIV/0! 0.00 0.10 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% Required Rate
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0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00 Capital Structure Irrelevance r-debt r-equity WACC Debt/asset Ratio
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Assets = 12000 Tax Rate = 40.0% YTM 5.0% 6.0% 8.0% 12.0% D/A Ratio D/A Ratio
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This note was uploaded on 09/14/2010 for the course FIN 312 taught by Professor Mcelreath during the Fall '08 term at Clemson.

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Cap Struct Games - IRR 10.0% YTM Debt/Asset Debt/Equity...

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