A Firm Requires an Investment of $18,000 and Will Return

question 20

Multiple Choice

A firm requires an investment of $18,000 and will return $25,000 after one year. If the firm borrows $10,000 at 6%, what is the return on levered equity?

• A) 80%
• B) 64%
• C) 96%
• D) 112%

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Definitions:

Practice Writing

The act of writing regularly to improve skill and fluency.

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A planned regimen to assess and organize tasks and goals on a weekly basis.

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Examinations designed to simulate the format and difficulty of real tests to help individuals prepare for actual assessments.

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The comprehensive evaluation or revision of material or work completed before its final submission or the end of a study period.