The Following Data Is Provided for the S&P 500 Index

question 24

Multiple Choice

The following data is provided for the S&P 500 Index:
-Refer to the information above. Calculate the 20-year arithmetic average annual rate of return on the P 500 Index.

• A)13.04%
• B)10.56%
• C)11.81%
• D)none of the above

---

Definitions:

Cost of Debt

The effective rate that a company pays on its total debt, reflecting the expense of borrowing funds.

Straight-Line Depreciation

A method of allocating an asset's cost evenly across its useful life.

After-Tax Annual Lease Payment

The amount of money paid every year for a lease after accounting for taxes.

Tax Rate

The fraction of earnings or revenue that governmental bodies levy as tax from individuals or corporations.