Assume that the unlevered cost equity of the coffee shop is


Question - Suppose you borrow $333000 when financing a tea shop which is valued at $470000. Assume that the unlevered cost equity of the coffee shop is 14.5% and that the cost of debt is valued at 7.5%. What is the value of debt next period for the tea shop?

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Accounting Basics: Assume that the unlevered cost equity of the coffee shop is
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