Answer the Following Questions Using the Information Below

question 69

Multiple Choice

Answer the following questions using the information below:
Ruth Cleaning Products manufactures home cleaning products. The company has two divisions, Bleach and Cleanser. Because of different accounting methods and inflation rates, the company is considering multiple evaluation measures. The following information is provided for 20X5:
The company is currently using a 15% required rate of return.
-What are Bleach's and Cleanser's return on investment based on current values, respectively?

• A)0.22; 0.67
• B)0.42; 0.52
• C)0.52; 0.42
• D)0.67; 0.22

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Definitions:

Debt Crisis

A situation where a country or organization is unable to pay back its borrowed money, leading to financial instability and potentially, economic decline.

Housing Prices

The amount of money required to purchase residential properties, which can fluctuate based on location, demand, and other economic factors.

Informational Cascade

An assessment (e.g., of an investment opportunity) based in part on the actions of others, which in turn were based on the actions of others.

Expected Gain

The anticipated positive return or benefit from an investment or action, often calculated as an average of possible outcomes.