Use next year's Cash Flow Forecast for Blank Company to answer the following questions:

-Suppose Blank Company has only one project,as forecast above,and an unlevered cost of equity of 8%.If the company borrows $10,000 at 5% to make the investment,what is the return to equity holders if demand is strong?
A)8.0%
B)54.0%
C)28.6%
D)38.0%

Question

Use next year's Cash Flow Forecast for Blank Company to answer the following questions:
 
-Suppose Blank Company has only one project,as forecast above,and an unlevered cost of equity of 8%.If the company borrows $10,000 at 5% to make the investment,what is the return to equity holders if demand is strong?
A)8.0% 
B)54.0% 
C)28.6% 
D)38.0%

Quizplus · Accepted Answer

The Answer of Use next year's Cash Flow Forecast for Blank Company to answer the following questions:
 
-Suppose Blank Company has only one project,as forecast above,and an unlevered cost of equity of 8%.If the company borrows $10,000 at 5% to make the investment,what is the return to equity holders if demand is strong?
A)8.0% 
B)54.0% 
C)28.6% 
D)38.0%

Use Next Year's Cash Flow Forecast for Blank Company to Answer