Calculate the firm's expected return on its assets if its expected return on debt is 10%, their 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%, their 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