Question
Your young brother is considering starting a new business. The new business that your young brother is planning to launch requires a total asset with
Your young brother is considering starting a new business. The new business that your young brother is planning to launch requires a total asset with an amount of $3/5,000 Moreover your brother is planning to finance the new business solely with common stock Your brother will go forward with the new business only the believes the new business will provide a 13.5% return on the invested capital How much net Income must be expected to warrant starting the business ?
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ANS WER 385 000 WORK ING 3 5 000 0 000 6 0 000 6 x 13 5 0 0000 81 0 0000 81 x 5 000 000 40 500 40 ...Get Instant Access to Expert-Tailored Solutions
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Microeconomics
Authors: Austan Goolsbee, Steven Levitt, Chad Syverson
1st Edition
978-1464146978, 1464146977
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