Assume Joe invests a total of $10,000 in a company - $5,000 of which is his own money and $5,000 which he borrowed at a 10% interest rate. If the company's stock value decreases by 5% in one year at which time Joe sells his shares of the stock, what is Joe's rate of return on his investment?
a. ?5%
b. ?10%
c. ?20%
d. ?30%
c
You might also like to view...
The real wage denotes
A) the number of units of consumption goods that can be exchanged for one unit of labor time. B) the number of units of labor time that can be exchanged for one unit of consumption goods. C) the number of units of labor time that can be exchanged for one unit of leisure time. D) the number of units of leisure time that can be exchanged for one unit of labor time.
Adam Smith's book, The Wealth of Nations, was published at the time of the:
a. War of 1812 b. U.S. Declaration of Independence. c. U.S. Civil War. d. Great Depression.
The benefits received principle means those with the least ability to pay should be the ones to receive the benefits
a. True b. False Indicate whether the statement is true or false
The Federal Reserve System is an:
Agency ran by popularly-elected officials Agency that is under the direction of the President Agency that is controlled by Congress Independent agency of government