A Firm's After-Tax Operating Income Was $1,000,000 in 2013

question 90

Multiple Choice

A firm's after-tax operating income was $1,000,000 in 2013. 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 2013 started to affect the operating income in 2014. Which value best represents the return on capital for 2013?

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

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Definitions:

Behavioral Segmentation

The process of dividing a market into groups based on consumer behaviors and patterns.

Consumer Markets

A sector where businesses sell products or services directly to individuals for private and household use, creating demand for various goods.

Behavioral Characteristics

Attributes that describe patterns of action and reaction of individuals or groups, often used in studying consumer behavior, employee performance, and social interactions.

Demographic Segmentation

The process of dividing a market into segments based on demographic factors such as age, gender, income, education, or ethnicity.