Question
Total assets: end of the year = $345,000; Net Farm Income = $57,500; Interest Expense = $11,000, Leverage ratio = 0.5. Calculate the rate of
Total assets: end of the year = $345,000; Net Farm Income = $57,500; Interest Expense = $11,000, Leverage ratio = 0.5. Calculate the rate of return on equity and the cost of farm debt.
| 75%; 11.8% | ||
| 50%; 11.8% | ||
| 25%; 20.4% | ||
| 25%; 9.60% |
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Investments
Authors: Zvi Bodie
12th Edition
1260819426, 9781260819427
