The Rate of Return a Company Must Earn to Maintain

question 25

Multiple Choice

The rate of return a company must earn to maintain its value is:

• A)Cost of capital
• B)Internal rate of return
• C)Net present value
• D)Gross profit margin

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Definitions:

Sellers

Persons or organizations that provide products or services for purchase in the marketplace.

Levied

The act of imposing a tax, fee, or fine by an authority.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded by consumers.

Tax

An obligatory fiscal contribution or alternative form of taxation placed on individuals by a governing body with the aim of financing government operations and a range of public expenses.