How do you find the maximum debt to leverage when given future cash flows and...
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How do you find the maximum debt to leverage when given future cash flows and rf ate?
- If risk free rate = 4%, tax rate = 25%, and pv of fcf = 500/1.1, what is the maximum debt one could take as a loan if they are opening a store with a cost of 200?
- would it just be the present value of cash flows discounted by 4% assuming that the loan would be paid back fully by those cash flows
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