Last Year the Uptown Division of Gorcen Enterprises Had Sales

question 80

Multiple Choice

Last year the Uptown Division of Gorcen Enterprises had sales of $300,000 and a net operating income of $24,000. The average operating assets at Uptown last year amounted to $120,000. Last year at Uptown the return on investment was:

• A)8%
• B)12%
• C)20%
• D)40%

---

Definitions:

SML

The Security Market Line, a graphical representation of the capital asset pricing model (CAPM), showing the expected return of investments as a function of their beta or systemic risk.

Expected Return

The anticipated profit or loss from an investment over a specified period, factoring in all possible scenarios.

Expected Dividend Yield

An estimation of the dividend earnings on a stock investment, expressed as a percentage of the stock price.

Expected Dividend

The forecasted amount of dividend payments that an investor anticipates receiving from investments in stocks.