| Debt
Overhang: IV |
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| • | Assets
in place with new project would |
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| yield
(6700+4100)/2 = 5400 on a total |
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| investment
of 4500 for a return of 20%; |
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| return
to bondholders would be 14.29%, but |
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| stockholders
won’t go for this. |
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