Average Operating Assets Are $110,000 and Net Operating Income Is

question 62

Multiple Choice

Average operating assets are $110,000 and net operating income is $23,100.The company invests $25,000 in new assets for a project that will increase net operating income by $4,750.What is the return on investment (ROI) of the new project?

• A)21%
• B)19%
• C)18.5%
• D)20%

Explore the role of religion and spirituality in moral and personal development.

Acknowledge the significance of empathy, prosocial behavior, and altruism in moral development.

Grasp the concept of moral reasoning in the context of societal and individual principles.

Comprehend the holistic development of morality, including cognitive, emotional, and social components.

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Definitions:

Net Capital Spending

The total expenditure on fixed assets less any sales of fixed assets. It indicates how much a company is investing in its current and future operations.

Dividends Per Share

The total dividends declared in a year divided by the number of outstanding shares of the company’s stock.

Par Value

The nominal or face value of a bond, share, or other financial instrument, traditionally the amount for which the security is issued.

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation and entitles the holder to a share of the company's profits through dividends.