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%

---

Definitions:

Recruitment

The process of identifying, attracting, interviewing, selecting, hiring, and onboarding employees.

Stress

A state of mental or emotional strain resulting from adverse or demanding circumstances.

Blended Family

A family unit where at least one parent has children from a previous relationship, mixing biological and step-relations within the household.

Individuals

Single human beings, as distinct from a group, considered independently from other people.