What Is the Rate of Return Normally Required by Investors

question 29

Multiple Choice

What is the rate of return normally required by investors when investing in a firm?

• A)capital required ROI
• B)capitalization rate
• C)weighted average cost of capital (WACC)_
• D)current yield

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Definitions:

ABC

Activity-Based Costing, an accounting method that assigns costs to products and services based on the activities and resources used in their creation and delivery.

Joint Products

The outputs generated from a joint manufacturing process.

Single Plantwide Rate

A method of allocating overhead to products using one uniform rate across an entire manufacturing plant or facility.

Activity-based Costing

A costing method that allocates overhead and indirect costs to specific activities, improving the accuracy of product and service costing.