HCA Case Flashcards
1
Q
In MM world, is rE always greater than rD?
A
Yes. But it is not creating value.
2
Q
What is assumed debt?
A
Debt that already exists.
3
Q
Why is assumed debt most problematic?
A
Because it already exists in the market and its value is uncertain.
4
Q
What is promised return vs expected return?
A
Expected return takes account into the chance of default.
