Ibragimov, Rauf; Velez-Pareja, Ignacio - MASTER CONSULTORES - 2007
Debt financing with subsidizes interest rate has a multidimensional impact on the firm. Value of the levered equity …, value of the debt and overall firm value will be different of those values with debt financing at market rate. Subsidized … equity with subsidized debt financing does not depend on the contractual interest rate."Extended APV valuation" performed by …