4. Assume you needed $60,000 to start your business and expected to make $40,000 in the...
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4. Assume you needed $60,000 to start your business and expected to make $40,000 in the first year. (6 pts) Scenario If you financed the $60,000 totally from your own contributions, what would be your return on equity (ROE)? What if you used $15,000 and got the remaining $45,000 from a family member. What would your ROE be then? What if you could fund half the amount yourself and borrowed the rest from a bank? What would be your ROE? ROE (%) 4. Assume you needed $60,000 to start your business and expected to make $40,000 in the first year. (6 pts) Scenario If you financed the $60,000 totally from your own contributions, what would be your return on equity (ROE)? What if you used $15,000 and got the remaining $45,000 from a family member. What would your ROE be then? What if you could fund half the amount yourself and borrowed the rest from a bank? What would be your ROE? ROE (%)
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