The Simple Arithmetic Average Return for the Common Stock of Saltwater

question 43

Multiple Choice

The simple arithmetic average return for the common stock of Saltwater Expeditions Incorporated for the eight-year period from 2005 through 2012 was 21 percent.The one-year holding period returns from 2005 through 2011 are given below.What is the implied one-year holding period return for 2012?

• A) 21.4%
• B) 24.4%
• C) 3.0%
• D) 13.0%
• E) −3.0%

Understand various approaches to product pricing, including cost-plus pricing.

Understand the principles of activity-based costing and its advantages over traditional costing systems.

Recognize the factors influencing pricing decisions, including cost-plus and variable cost concepts.

Identify the concepts of sunk cost, differential cost, and opportunity cost in decision-making processes.

---

Definitions:

Charismatic Leaders

Those leaders who are capable of having a profound and extraordinary effect on followers.

Communication Skills

The abilities used in effectively transmitting and receiving messages through verbal and non-verbal means.

Organization

An organization is a group of people who work together structurally to achieve a common goal or set of objectives through coordinated activities and efforts.

Critical Thinking

The objective analysis and evaluation of an issue in order to form a judgment.