What Is the Minimum Required Rate of Return on a Lease

question 6

Multiple Choice

What is the minimum required rate of return on a lease from Dominion Leasing Corporation (DLC) if DLC's tax rate is 40%, and its capital structure consists of 80% long-term debt with a cost of 7% and 20% equity with a cost of 13.8%?

• A) 9.98%
• B) 8.36%
• C) 6.12%
• D) 6.34%

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Workforce

The group of people engaged in or available for work, either in a country or organization, including both employees and the potential labor pool.

Collaboration

The action of working with someone to produce or create something, emphasizing teamwork and collective effort.

Interpersonal Communication

The direct, face-to-face communication between two or more individuals.

Nonverbal Communication

The conveyance of messages or information through means other than spoken or written words, such as gestures, facial expressions, and body language.