LRC [3] You invest $100,000 in the Liana Rope Company. To make the investment, you borrowed $75,000

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LRC [3]

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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Lectures On Corporate Finance

ISBN: B00RGENH5I

1st Edition

Authors: Peter L Bossaerts ,Bernt Arne Odegaard

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