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Business, 23.02.2021 03:00 misslux

A new business requires a $20,000 investment today and will generate a​ one-time cash flow of $25,000 after one year. The business will be financed with​ 50% equity and​ 50% debt. If the firm can borrow at​ 7%, what is the return on levered​ equity?

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A new business requires a $20,000 investment today and will generate a​ one-time cash flow of $25,00...
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