A Firm Requires an Investment of $20,000 and Will Return

question 40

Multiple Choice

A firm requires an investment of $20,000 and will return $25,000 after one year.If the firm borrows $10,000 at 7% what is the return on levered equity?

• A)43%
• B)29%
• C)37%
• D)39%

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Definitions:

Population Proportion

The share or fraction of a population that exhibits a particular attribute or characteristic.

Population Proportion

The ratio of members in a group that have a characteristic of interest to the total number of individuals in the population.

Sample Proportion

The fraction or percentage of the sample that has a particular property or characteristic.

Population Proportion

The fraction or percentage of individuals in a population that exhibit a specific attribute or characteristic.