Question
Asset Return Liabilities & Equity Return Asset A $10,000 30% Liability $1,000 16% Asset B 2,000 12% Liability D (2,500) ? Equity B 13,500 26%
| Asset Return | Liabilities & Equity Return |
| Asset A $10,000 30% | Liability $1,000 16% |
| Asset B 2,000 12% | Liability D (2,500) ? |
|
| Equity B 13,500 26% |
|
|
|
Calculate the return on Liability D as the weighted average of the returns on the other financial instruments? 5 marks. What is the weight attached to Asset A? 2 marks. Is Liability D really a liability? Explain. 3 marks.
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Personal Finance
Authors: Elizabeth B. Goldsmith
1st Edition
0534544959, 9780534544959
