Question: I need a solution and answer for this one. Thank you. 21. Compus plans to borrow $400,000 at 7% interest in order to finance an

I need a solution and answer for this one. Thank you.

21. Compus plans to borrow $400,000 at 7% interest in order to finance an expansion. The expansion is expected to increase current income from $100,000 to $175,000 before interest expense. CompUS has $1,000,000 in equity. The expected return on equity after the expansion is

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