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 +

---

Definitions:

Carrying Capacity

The maximum population or load that a particular environment, system, or device can support sustainably.

Sustainability

The practice of maintaining processes or states over time, often specifically in ecological terms, without harmful impact on the natural environment or depletion of resources.

Weak Ties

in social network theory, refers to relationships that are not closely bonded but can provide new information and opportunities not available within closely knit groups.

Sustainability Lens

A perspective or evaluation approach focusing on environmental, social, and economic sustainability in decision-making processes.