Ibragimov, Rauf; Velez-Pareja, Ignacio - MASTER CONSULTORES - 2008
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 …. Debt financing with subsidized interest rate converts into the gain for the levered equity. This value gain originates from …