A Firm Has an Average Investment of $1,000 During the Year.During

question 1

Multiple Choice

A firm has an average investment of $1,000 during the year.During the same time,the firm generates after-tax earnings of $150.
If the cost of capital is 10%,what is the net return on investment?

• A)10%
• B)5%
• C)12%
• D)15%

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Definitions:

Classroom Learning

The process of acquiring knowledge and skills within a structured educational environment involving teachers and students.

Font Size

A measure that indicates the size of text in a document or screen, typically expressed in points (pt), pixels (px), or ems.

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The cognitive function that allows individuals to store, retain, and recall information.

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Learning that takes place as a consequence of behavior; a person’s actions are instrumental in determining whether learning takes place.