What Is the Annual Value Creation for a Firm Which

question 8

Multiple Choice

What is the annual value creation for a firm which has a required rate of return of 13 per cent, an actual rate of return of 15 per cent, and an investment of £2,000,000?

• A) £40,000
• B) £1,000
• C) £10,000
• D) £4,000

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Definitions:

Multiple Proportions

This is a law stating that when two elements combine to form more than one compound, the masses of one element that combine with a fixed mass of the other are in a ratio of small whole numbers.

Different Ratios

Proportions or comparative quantities of elements or components in a mixture or compound.

Compound

A substance made up of two or more different elements chemically combined in fixed proportions.

Elements

Pure chemical substances consisting of a single type of atom, distinguished by their atomic number, which is the number of protons in their atomic nuclei.