. A USD25 million equity portfolio is financed 20 percent with debt at a cost of 6 percent annual cost. If that equity portfolio generates a 10 percent annual total investment return, then the leveraged return is: A. 11.0 percent.
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Can anyone please explain how & when to use FV annuity factor?
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Answer given is C, please post the solution for it. In case the question isn’t clear: A sample of 25 observations ...