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

question 134

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) Cannot be calculated

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Definitions:

Streak

The color of a mineral's powder when rubbed across a rough hard surface, used as a diagnostic property in mineral identification.

Magnetism

A property of materials that causes them to attract or repel other materials based on the presence of a magnetic field.

Specific Gravity

The proportion between the density of a material and the density of a reference material, usually water, given a certain temperature.

Specific Gravity

The ratio of the density of a substance to the density of a reference substance, typically water for liquids and solids, or air for gases.