Which of the Following Can Be Used to Arrive at the Target

question 99

Multiple Choice

Which of the following can be used to arrive at the target rate of return on investment?

• A) dividing target annual operating income by invested capital
• B) multiplying target annual operating income by the rate of fixed preference dividend
• C) dividing invested capital by estimated dividend rate
• D) multiplying earnings available to equity stakeholders by price-equity ratio

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Definitions:

Middle Term

The term that appears in both premises of a standard syllogism but not in the conclusion, acting as a link in deductive reasoning.

Major Premise

The first proposition in a syllogism, from which a conclusion is drawn, typically a general statement.

Minor Premise

The second proposition in a syllogism, from which along with the major premise the conclusion is derived.

Categorical Syllogism

A logical argument that derives a conclusion from two statements, asserting or denying something about a category.