Question
Mary uses $600,000 of her cash to purchase 40 acres of land at the cost of $600,000. Is Mary using financial leverage? After 1 year,
Mary uses $600,000 of her cash to purchase 40 acres of land at the cost of $600,000. Is Mary using financial leverage? After 1 year, the value of land increased by 20% . What will be the selling price of the land?
| 1. | Yes, $720000 | |
| 2. | No, $620000 | |
| 3. | Yes, $620,000 | |
| 4. | No, $720000 |
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Valuing A Business
Authors: Shannon P. Pratt, Robert F. Reilly, Robert P. Schweihs
4th Edition
0071356150, 978-0071356152
