Assume that a company has $2.000 equity and borrows $1000 at 10 nterest. All of frns funds are invested in the same set whh yed 20 RNCA Caulethe companyO O S O 15% O 20% O 25

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Assume that a company has 52,000 equity and borrows $1000 at 10% terest, All of fens funds are investnd in the same aset which ye 20 INOA, Calculte the company's ROK.
O SM
O 15%
O 20%
O 25%
Transcribed Image Text:Assume that a company has 52,000 equity and borrows $1000 at 10% terest, All of fens funds are investnd in the same aset which ye 20 INOA, Calculte the company's ROK. O SM O 15% O 20% O 25%
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