- The MM conditions hold. The risk-free rate is 4%, the expected return on equity of a unlevered firm is 8%
a) A firm in the same risk class has 20m equity and 30m debt. What is the expected return on equity?
b) What is the debt ratio of a firm whose expected return on equity is 10%?
Also:
Formel: uev= ueu + (ueu-r)*L (Seite 356 Schredel)
L = FK/EK
L = 30/20 = 1,5
uev = 0,08 + (0,08-0,04)*1,5
uev = 0,14
b)
0,1 = 0,08 + (0,08 - 0,04)*L
0,02 = 0,04*L
L = 0,5
Lesezeichen