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The following information is provided: Assume the division's current ROI is 10 per cent and the firm's minimum required rate of return is 8 per cent. If you were the division manager and you were evaluated based on ROI, which projects would you accept?
Dividend Prospects
The potential for future dividend payments from investments, often assessed to evaluate the attractiveness of stocks.
Future Interest Rates
Expected rates of interest in the future, affecting everything from loans to investments.
Abnormal Return
The difference between the actual return of an investment and the expected return based on the risk and market's overall returns.
Sales Increase
An upward movement in the quantity sold or the revenue generated from the sale of a product or service over a specific period.
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