The Rate of Return Which a Firm Must Earn on Its

question 373

Multiple Choice

The rate of return which a firm must earn on its existing assets if the firm is to maintain the value of its stock is called the:

• A) Return on equity.
• B) Weighted average cost of capital.
• C) Adjusted market yield.
• D) Current yield.
• E) Capital yield.

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Definitions:

Purchase Price

The amount of money paid by a buyer to acquire ownership of a product or property.

Unenforceable

A term describing a contract or clause that cannot be upheld or compelled by law.

Not in Writing

Refers to agreements or communications that haven't been formally recorded on paper or in any digital format.

Electric Pencil Sharpener

A device powered by electricity used for sharpening pencils through a rotating mechanism.