Which One of the Following Represents the Rate of Return

question 32

Multiple Choice

Which one of the following represents the rate of return a firm must earn on its assets if it is to maintain the current value of its securities?

• A)debt-equity ratio
• B)after-tax cost of debt
• C)internal rate of return
• D)cost of equity
• E)weighted average cost of capital

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Definitions:

Planning and Strategizing

The process of creating and implementing plans to achieve specific goals and objectives.

Equity Theory

A concept in social psychology that describes how individuals strive for fairness in exchanges or transactions, particularly in relation to others.

O/I Ratio

In business, often refers to the Operating Income Ratio, a metric used to assess financial performance.

Referent Others

Individuals or groups that people compare themselves to for the purpose of self-evaluation or seeking guidance.