For the Return on Assets Pricing Method,desired Earnings Are Computed

question 23

True/False

For the return on assets pricing method,desired earnings are computed by dividing asset costs by projected units to be produced and then multiplying by the desired rate of return on assets.

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Definitions:

Bond Yield

The return an investor realizes on a bond, calculated as the annual interest payment divided by the bond's current market price.

Face Value

Face value refers to the nominal or dollar value printed on a security or financial instrument, such as a bond or stock certificate.

Principal Amount

The initial size of a loan or debt on which interest is calculated, or the original investment amount in a financial instrument.

Maturity

The date on which a financial obligation must be repaid in full.