Coeden Co

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October 4, 2019 at 7:49 am #548098
sarah06
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Cost of debt = 4% +” 0·9%” = 4·9%

Hi sir, how do i find 0.9 in the answer given?

Thanking in you in advance.
October 4, 2019 at 8:36 am #548103
John Moffat
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- Topics: 57
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The last line of the question says that the credit spread on BBB rated bonds is 90 basis points. 1 basis point is 0.01%, so 90 basis points is 0.9%.
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