Use the Following Information to Answer the Question(s)below

question 94

Multiple Choice

Use the following information to answer the question(s) below.
-If the market risk premium is 6% and the risk-free rate is 4%,then the expected return of investing in Ford Motor Company is closest to:

• A)10.0%.
• B)16.2%.
• C)17.1%.
• D)20.6%.

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Definitions:

Journal Entry

A record in accounting that notes every financial transaction of a business in chronological order.

FOB Shipping Point

A shipping term indicating that the buyer assumes responsibility for the goods and the cost of transportation as soon as the goods leave the seller's premises.

Freight Costs

Expenses associated with transporting goods from one place to another, including the costs of shipping, handling, and insurance of goods during transit.

Perpetual Inventory System

A method of inventory management that records real-time transactions of goods, maintaining continuous inventory balance.