Reference no: EM133039766

Question - Ms. T invests Rs60,000 in a 10% yielding asset, using leverage of 1.4times. Borrowing was at 9% p.a.

a. How much own funds did Ms. T invest?

i . Rs35,000 ii. Rs 25,000 iii. Rs42,857 iv. Rs17,143

b. How much interest did Ms. T need to pay?

i. Rs2,250 ii. Rs5,400 iii. Rs 3,150 iv. Rs3,500

c. What was Ms. T's net return

i . Rs6,000 ii. Rs 2,850 iii. Rs3,750 iv. Rs2,500

d. What was Ms. T's return on equity?

i . 1% ii. 10.4% iii. 10.9% iv. 11.4%