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  • July 30, 2016 at 5:53 pm #330299
    mysteryxorwox
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    Hi there,

    I’m a bit confused on how they calculated the cost of debt. Should k(d) not be equal to the risk free rare plus credit risk premium I don’t understand where the 0.9 in the answer came from to get to a k(d) of 4.9.

    Many thanks!

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