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

question 3

Multiple Choice

A firm requires an investment of $20,000 and will return $26,500 after one year.If the firm borrows $5,000 at 7% what is the return on levered equity?

• A)43%
• B)39%
• C)41%
• D)45%

---

Definitions:

Unemployment Rate

The proportion of the workforce that is unemployed and actively seeking work.

Labor Force

The total number of people, including both the employed and unemployed, who are actively seeking employment.

Adult Population

The segment of the population that is considered adult, typically based on a specific age range, often used in demographics and employment statistics.

Labor-Force Participation Rate

The percentage of the population that is either employed or actively looking for employment.