Assume Joe invests a total of $10,000 in a company—$5,000 of which is his own money and $5,000 of which he borrowed at a 10 percent interest rate. If the company’s stock value increases by 20 percent in one year at which time Joe sells his shares of the stock, what is Joe’s rate of return on his investment?
A. 10 percent
B. 15 percent
C. 20 percent
D. 30 percent
Answer: D
Economics
You might also like to view...
When revenues exceed expenditures
a. there is a budget surplus b. there is a budget deficit c. the government must create more money d. the government is forced to issue more bonds to raise money
Economics
Refer to Figure 4-8. What is the value of consumer surplus after the imposition of the ceiling?
A) $120,000 B) $230,000 C) $270,000 D) $430,000
Economics