If a Project Was Financed with 50% Equity and 50

question 119

Multiple Choice

If a project was financed with 50% equity and 50% debt costing 8%, the return on equity would be___________assuming the project pays a _________return.

• A) 10%; 8%
• B) 24%; 16%
• C) 16%; 10%
• D) 28%; 21%

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Definitions:

Material Alteration

A significant change to a document or contract that can affect its validity or alter its meaning and obligations.

Defense

The act of defending against a charge, accusation, or claim in legal proceedings or contexts.

Mentally Incompetent

A legal status indicating that an individual is not capable of managing their affairs due to mental incapacity.

Promissory Notes

Written promises to pay a specified sum of money to a certain person at a specified time or on demand.