LRC [3] You invest $100,000 in the Liana Rope Company. To make the investment, you borrowed $75,000
Question:
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?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Lectures On Corporate Finance
ISBN: B00RGENH5I
1st Edition
Authors: Peter L Bossaerts ,Bernt Arne Odegaard
Question Posted: