Mark Pincus is the founder of Zynga. Assume that his company currently has $250,000 in equity, and
Question:
Required
1. Using return on equity as the decision criterion, show computations to support or reject the expansion if interest on the $100,000 note is
(a) 10%,
(b) 15%,
(c) 16%,
(d) 17%,
(e) 20%.
2. What general rule do the results in part 1 illustrate?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Question Posted: