The Rate of Return Which a fiRm Must Earn on Its

question 245

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:

Measures of Central Tendency

Statistical measures that describe the center position of a distribution for a data set, including mean, median, and mode.

Data Set

All the data from a research project.

Mode

The most frequent score in a set of scores.

Measures of Dispersion

Measures of dispersion quantify the spread or variability within a set of data points, common examples include range, variance, and standard deviation.