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:

Executive Branch

The part of government responsible for implementing and enforcing laws, typically headed by the president or prime minister and their cabinet.

Impeach

The process by which a public official is charged with misconduct or wrongdoing, potentially leading to their removal from office.

State of Nature

A concept in political philosophy used to describe the hypothetical conditions of human life before the establishment of society or government.

Thomas Hobbes

A 17th-century English philosopher best known for his work in political philosophy, particularly his book "Leviathan," which established the foundation for most of Western political philosophy.