A USD25 million equity portfolio is financed 20 percent with debt at a cost of 6 percent
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A USD25 million equity portfolio is financed 20 percent with debt at a cost of 6 percent annual cost. If that equity portfolio generates a 10 percent annual total investment return, then the leveraged return is:
A. 11.0 percent.
B. 11.2 percent.
C. 13.2 percent
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