A Segment with an ROI of 30% Has an Income

question 46

Multiple Choice

A segment with an ROI of 30% has an income of $84,000. The company's required rate of return on segment investments is 18%. The segment's residual income is:

• A)$50,400
• B)$25,200
• C)$26,712
• D)$33,600

Recognize the importance of maintaining confidentiality of client information and the procedures to ensure it.

Identify the steps involved in opening, managing, and closing client files in a law firm.

Comprehend the professional obligations of a paralegal in handling client information and documents.

Understand the procedures for proper document management, including filing, storing, and disposing of legal documents.

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Definitions:

Residual

The amount remaining after the principal parts have been taken away or used up, often used in financial contexts.

Dividend Aversion

A theoretical behavior where investors prefer companies that retain earnings over those that pay out dividends, possibly due to tax advantages.

Capital Gains

The increase in value of an asset or investment over time, which becomes apparent when the asset is sold for more than its purchase price.

Tax Rates

The percentage of income or value of goods taxed by the government.