A Firm Requires an Investment of $20,000 and Will Return

question 9

Multiple Choice

A firm requires an investment of $20,000 and will return $26,500 after one year. If the firm borrows $5,000 at 7% what is the return on levered equity?

• A) 45%
• B) 41%
• C) 39%
• D) 43%

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Definitions:

Past Studies

Refers to previous research or investigations conducted on a particular subject or topic.

Reliability

The consistency and dependability of a measurement or testing process, indicating its accuracy over time and across various conditions.

Misogyny

Prejudice or disdain towards women, often manifesting in discrimination, devaluation, and violence against women.

Benzodiazepines

A class of psychoactive drugs with sedative, hypnotic, anxiolytic, anticonvulsant, and muscle relaxant properties, often used to treat anxiety, insomnia, and seizures.