If a $10,000 Investment Increases to $10,080 in One Year,what

question 47

Multiple Choice

If a $10,000 investment increases to $10,080 in one year,what is its rate of return?

• A) .8 percent
• B) 1.08 percent
• C) 8 percent
• D) 80 percent
• E) 108 percent

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Definitions:

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating the percentage of fixed costs in a company's cost structure.

Financial Break-Even

The point at which total revenues and total expenses are equal, leading to a net income of zero.

Operating Leverage

A measure of how sensitive a company's operating income is to a change in revenue, indicating the degree to which a firm can increase operating income by increasing sales.

Severe Damage

Refers to extensive physical harm or destruction to property, objects, or systems.