For this exercise, we assume that there are no taxes and
financial markets are perfect. The ideal bank's interest rate (EAR)
is 8% per year for all maturities. Company X owns one apartment
building and has no other assets. Company X is 100%
equity-financed;_ its revenue comes entirely from rental revenue of
apartments it owns. We also assume that there are no cash costs, no
depreciations, no investments, no working capital, therefore we
have: rental revenue=EBIT=net income=free cash flow. Company...