What Is the Proportion of Equity Financing for a Firm

question 60

Multiple Choice

What is the proportion of equity financing for a firm that expects a 15% return on equity, a 10% return on assets, and an 8% return on debt? Ignore taxes.

• A)25%
• B)29%
• C)75%
• D)71%

---

Definitions:

Self-Incompatibility

A genetic condition in which the pollen cannot fertilize the same flower or flowers on the same plant.

Pollen

Fine to coarse powdery substance comprising pollen grains, which are male microgametophytes of seed plants, responsible for the transfer of sperm to ovules.

Apomixis

A type of plant reproduction method in which seeds form without the need for fertilization, resulting in progeny that are genetically the same as the parent plant.

Fruit Species

Refers to the various types of fruit-bearing plants or trees classified based on genetic, morphological, and ecological characteristics.