A Firm Requires an Investment of $25,000 and Will Return

question 12

Multiple Choice

A firm requires an investment of $25,000 and will return $36,500 after 1 year. If the firm borrows $20,000 at 7%, what is the return on levered equity?

• A) 162%
• B) 202%
• C) 242%
• D) 283%

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IQ Test

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