A firm can issue $21m of debt at 5.7 before it has to increaseit's interest rate. It can then issue $4m at 8.4 before it has toincrease its interest rate again.
What is the second breakpoint on debt? i.e. at what dollaramount would the MCC change?
The firm's weight on debt is 36%.
$12,321,000 would be entered as 12.32
A firm can issue $21m of debt at 5.7 before it has to increase it's interest rate. It can then issue $4m at 8.4 before i
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answerhappygod
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