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

question 100

Multiple Choice

A firm requires an investment of $20,000 and will return $26,500 after one year. If the firm borrows $6000 at 7%, what is the return on levered equity?

• A) 35%
• B) 52%
• C) 43%
• D) 61%

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Definitions:

Increase

A rise in quantity, size, number, or degree.

Babbling

A stage in child language acquisition, during which an infant appears to be experimenting with uttering articulate sounds but does not yet produce any recognizable words.

Cultures

The shared practices, values, beliefs, institutions, and objects of groups of people that are passed down from generation to generation.

Infants

Very young children, especially those under one year of age, who are in the early stages of development.