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Business, 25.04.2020 04:15 bobbyxii6033

After another year, Biwei’s business is in rapid expansion. He wants to raise $1M new capital. He can finance by taking a loan or issuing stock shares. The market interest rate for a loan is 5%. For an angel investor, injecting $1M into Biwei’s business will dilute 50% of Biwei’s ownership. What is the capital cost of Biwei’s business expansion?

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After another year, Biwei’s business is in rapid expansion. He wants to raise $1M new capital. He ca...
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