Post Utme Pan Atlantic University 2025 Commerce Question 27

Practice objective / multiple choice question 27 from the 2025 Post Utme Pan Atlantic University Commerce examination.

Post Utme Pan Atlantic University 2025 Commerce Objective / Multiple Choice
Question 27 POST_UTME_PAN-ATLANTIC_UNIVERSITY • 2025 • COMMERCE • objective

A company is considering setting up a new financial institution to provide loans to its customers. The company's current annual revenues are ₦1.5 billion, and the new financial institution is expected to generate an additional ₦750 million per annum. The company's cost of capital is 15% per annum. What is the expected return on investment (ROI) for the new financial institution?

Answer Options

A. 20%
B. 22%
Correct Answer C. 25%
D. 28%
Correct Answer
C
Correct Option:
25%

About This Question

This is Post Utme Pan Atlantic University 2025 Commerce Question 27. It is one of the objective questions from the 2025 Post Utme Pan Atlantic University Commerce examination.

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