Cap Structure Interview Question
You have 2 companies. One you finance with 50% debt, the other with 75% debt. Assume $10mm revenue throughout and no COGS, etc. so down to FCF. What is the difference in return you would get?
You have 2 companies. One you finance with 50% debt, the other with 75% debt. Assume $10mm revenue throughout and no COGS, etc. so down to FCF. What is the difference in return you would get?
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