Methods for estimating debit cost of capital
Problem: What are the two methods for estimating debit cost of capital, and what do you do when there is default risk? Explain the circumstances in which you would use each method. Give examples.
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Assuming that a 12% interest rate properly reflects the time value of money in this situation and that all maintenance and insurance costs
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What are the two methods for estimating debit cost of capital, and what do you do when there is default risk?
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