Entrepreneurial Finance
6th Edition
ISBN: 9781337635653
Author: Leach
Publisher: Cengage
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Provide correct answer the accounting question
Transcribed Image Text:Assume a firm is financed with 30% debt on which it pays 9%.
What is the expected return on equity if the expected return on
assets is 14%?
A. 16.14%
B. 17.96%
C. 14.92%
D. 15.50%
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