Where is the interest received (paid) at time t and is the total cash and deposits (total debt). As shown in exhibit 4, the effective average interest on income is equal to 0.55% and that on borrowings is 1.35%. The effective rate on borrowing will be used as the cost of debt later on in the valuation. easyJet held 5 aircrafts under finance leases in 2016, which is a decrease from the 11 they held in 2015, hence the decrease in finance lease
Where is the interest received (paid) at time t and is the total cash and deposits (total debt). As shown in exhibit 4, the effective average interest on income is equal to 0.55% and that on borrowings is 1.35%. The effective rate on borrowing will be used as the cost of debt later on in the valuation. easyJet held 5 aircrafts under finance leases in 2016, which is a decrease from the 11 they held in 2015, hence the decrease in finance lease