What Is the Numerator in the Average Accounting Rate of Return

question 4

Multiple Choice

What is the numerator in the average accounting rate of return technique?

• A)Required rate of return
• B)Average invested capital
• C)EBDIT
• D)Average income

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Definitions:

Lenders

Lenders are individuals or institutions that provide funds to others with the expectation that the funds will be repaid, usually with interest.

Bonds

Fixed-income instruments that represent a loan made by an investor to a borrower, typically corporate or governmental.

Physical Assets

Tangible objects or properties owned by an individual or business that have intrinsic value, such as machinery, buildings, or land.

Price Level

The comprehensive average of current prices for goods and services in the economic sector.