The major rating agencies have recently downgraded China Evergrande’s debt. a. Compare the ratings of China Evergrande a

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answerhappygod
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The major rating agencies have recently downgraded China Evergrande’s debt. a. Compare the ratings of China Evergrande a

Post by answerhappygod »

The major rating agencies have recently downgraded China
Evergrande’s debt.
a. Compare the ratings of China Evergrande and British Land.
What do they imply for the cost of debt of these
companies?
b. Given your reply to question 2a, is a debt beta of 0 a good
estimate for China Evergrande? Which steps would you take to
estimate its true debt beta?
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