Suppose Blank Company Has Only One Project,as Forecast Above,and an Unlevered

question 102

Multiple Choice

Suppose Blank Company has only one project,as forecast above,and an unlevered cost of equity of 8%.If the company borrows $10,000 at 5% to make the investment,what is expected return to equity holders?

• A)8.0%
• B)11.6%
• C)9.33%
• D)30.0%
• E)33.3%