question archive Jense Company’s return on common stockholders’ equity is 16%
Jense Company’s return on common stockholders’ equity is 16%
Subject:ManagementPrice: Bought3
Jense Company’s return on common stockholders’ equity is 16%. Midtown Bank has offered a $100,000 loan at an annual interest rate of 14%. Jense currently has 50,000 shares of common stock and 10,000 shares of 8% preferred stock outstanding. The financial leverage of the loan would be:
