Question
1) A firm has a total asset of $1,000 during the year. During the same time, the firm has a net income (after-tax earnings) of
1) A firm has a total asset of $1,000 during the year. During the same time, the firm has a net income (after-tax earnings) of $80. If the cost of capital is 10%, what is the net return on investment?
A) -2%
B) None of the above
C) 8%
D) 2%
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
15th edition
77861612, 1259194078, 978-0077861612, 978-1259194078
