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

question 35

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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?


Definitions:

Fallacy of Composition

The erroneous belief or argument that what is true for a part is necessarily true for the whole, or that what holds for individual members of a group must necessarily hold for the group as a whole.

Nearest Exit

The closest point of egress from a building, vehicle, or area, often highlighted as part of safety protocols.

Large Audience

A substantial number of viewers, listeners, or spectators gathered for an event or through a broadcast media platform.

No Free Lunch

A principle asserting that everything has a cost, and nothing valuable can be obtained without effort or exchange.

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