15.3 You invest $100,000 in the stock of the Liana Rope Company. To make the investment, you...

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

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Corporate Finance

ISBN: 9780071229036

6th International Edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe

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