Calculate the firm's expected return on its assets if its expected return on debt is 10%,its expected return on equity is 20%,and its WACC is 14%.
A) 14%
B) 15%
C) 16%
D) Cannot be calculated

Name: Calculate the firm's expected return on its assets if its expected return on debt is 10%,its expected return on equity is 20%,and its WACC is 14%. A) 14% B) 15% C) 16% D) Cannot be calculated
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Question

Quizplus · Accepted Answer

The correct answer is A because the expected return on assets is equal to the WACC.

Calculate the Firm's Expected Return on Its Assets If Its