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What is the rate of return to shareholders if a company financed $1 million through the following ways. equity 50% equity, 50% debt @12% rate
What is the rate of return to shareholders if a company financed $1 million through the following ways.
- equity
- 50% equity, 50% debt @12% rate
- 25% equity, 75% debt @12% rate
Assets are expected to make earnings of $150,000 pa
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