Had a restructuring interview and messed up a simple accounting walk through. Was hoping someone could post the answer to this one:
$100 Asset is purchased with 50% equity, 50% debt. Walk through what happens to the 3 statements on day 1.
Assume a 40% tax rate and 10% interest on debt - what will happen after the first month? Walk through the 3 statements at the end of month 1.
Thanks!
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