Calculate the Firm's Expected Return on Its Assets If Its

question 110

Multiple Choice

Calculate the firm's expected return on its assets if its expected return on debt is 10%, its expected return on equity is 20%, and its WACC is 14%.

• A) 14%
• B) 15%
• C) 16%
• D)17%

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Definitions:

Wage Expense

The total cost incurred by a company for the salaries and wages of its employees.

Withdrawals

Sums of money withdrawn by the business owner(s) for private expenses.

General Journal

A basic accounting record used to keep track of all business transactions not recorded in specialized journals.

Account Titles & Descriptions

Names and explanations assigned to individual accounts in the financial statements, reflecting the nature and type of transaction.