Stephanie thinks shell need $60,000 to start her business and expects it to make $40,000 the first

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Stephanie thinks she’ll need $60,000 to start her business and expects it to make $40,000 the first year.

a. If she financed that $60,000 totally from her own contributions, what would be her return on equity?

b. What if she used $20,000 and got the remaining $40,000 from Brenda? Then what would Stephanie’s return on equity be?

c. What if Stephanie could fund half the amount herself and borrowed the rest? What would her return on equity be then?

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Entrepreneurial Small Business

ISBN: 978-1259573798

5th edition

Authors: Jerome Katz, Richard Green

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Question Posted: Mar 12, 2019 01:34 PM

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Stephanie thinks shell need $60,000 to start her business and expects it to make $40,000 the first

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