What Proportion of the Firm Is Financed by Debt for a Firm

question 38

Multiple Choice

What proportion of the firm is financed by debt for a firm that expects a 15% return on equity, a 12% return on assets, and a 10% return on debt? The tax rate is 25%.

• A)20%
• B)1/3
• C)60%
• D)2/3
• E)80%

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Definitions:

Surnames

Surnames are family names passed down through generations, often used to identify individuals within a wider family context, reflecting lineage, heritage, and sometimes social status or occupation.

Mother's Name

Typically refers to the given name or full name of an individual's mother, which may be used for identification, legal, or cultural purposes.

Sedentary Ju/'hoansi

Refers to the Ju/'hoansi, a group traditionally living as hunter-gatherers in Southern Africa, who have adopted a more sedentary lifestyle due to various factors.

Social Changes

Alterations in the social structures and cultural patterns of a society over time, which can result from innovation, conflict, or external factors.