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Return on liability d as the weighted average

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Reference no: EM133113153

Asset                                    Return

Liabilities & Equity          Return

Asset A      $10,000                    30%

Liability      $1,000                       16%               

Asset B          2,000                     12%

Liability D    (2,500)                       ?

 

Equity B       13,500                      26%

Calculate the return on Liability D as the weighted average of the returns on the other financial instruments? 5 marks. What is the weight attached to Asset A? 2 marks. Is Liability D really a liability? Explain

Reference no: EM133113153

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