Suppose Blank Company Has Only One Project, as Forecast Above

question 73

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? Assume the demand is as expected.

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

---

Definitions:

Tablets

Portable computing devices featuring a touchscreen and offering a blend of smartphone and laptop functions.

Mobile Technology

Describes portable devices and wireless communications technologies that allow for internet access, data exchange, and mobile applications.

Ethical Business Communications

The practice of sharing information in a business context that adheres to moral principles and professional standards.

Code Of Ethics

A set of guidelines designed to set out acceptable behaviors and practices for individuals or organizations in specific professions or groups.