Potential interest rate on the shareholders equity:
K_D = R_f + \beta R_p |
where
R_f | risk-free bond |
R_p | |
\beta | sensitivity to market risk for the security |
Potential interest rate on the shareholders equity:
K_D = R_f + \beta R_p |
where
R_f | risk-free bond |
R_p | |
\beta | sensitivity to market risk for the security |