You invest ($ 100,000) in the Liana Rope Company. To make the investment, you borrowed ($ 75,000)

Question:

You invest $\$ 100,000$ in the Liana Rope Company. To make the investment, you borrowed $\$ 75,000$ from a friend at a cost of $10 \%$. You expect your equity investment to return $20 \%$. There are no taxes. What would your return be if you did not use leverage?

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