A Firm's After-Tax Operating Income Was $1,000,000 in 2020

question 35

Multiple Choice

A firm's after-tax operating income was $1,000,000 in 2020.It started the year with a total capitalization of $8,000,000 and ended the year with a total capitalization of $9,000,000.The additional capital raised during 2020 started to affect the operating income in 2021.Which value best represents the return on capital for 2021?

• A)12.5%
• B)11.8%
• C)11.1%
• D)10.0%

---

Definitions:

Ego Ideal

Part of the psyche that consists of the ideal self or the standard by which one measures oneself against, often a driver for striving and self-improvement.

Superego

In psychoanalytic theory, the part of the personality that acts as a moral center, embodying societal norms and ideals against which the ego and id are evaluated.

Standard

A level of quality or attainment used as a measure, norm, or model in comparative evaluations.

Selfish

Prioritizing one's own needs or desires over those of others; acting with concern for oneself above others or the common good.