What Is the Expected Return on Equity for a Firm

question 108

Multiple Choice

What is the expected return on equity for a firm with a 14% expected return on assets that pays 9% on its debt, which totals 70% of assets?

• A)16.14%
• B)17.00%
• C)19.00%
• D)25.67% Expected return on equity = Expected return on assets +

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