Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 28, 2024

Avocado Company has an operating income of $100,000 on revenues of $1,000,000. Average invested assets are $500,000, and Avocado Company has an 8% cost of

Avocado Company has an operating income of $100,000 on revenues of $1,000,000. Average invested assets are $500,000, and Avocado Company has an 8% cost of capital.

What is the return on investment?

A. 12%

B. 8%

C. 10%

D. 20%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Text Only

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel

5th Edition

0006575404, 978-0006575405

More Books

Students also viewed these Accounting questions

Question

★★★★★

During the month of September, the Bridge City Go-Kart Company had the following business activities: a. On September 1, paid rent on the track facility for six months at a total cost of $12,000. b....

Answered: 1 week ago

Question

★★★★★

Brad?s Building Supplies entered into the following transactions involving current liabilities during 2020 and 2021: Required Prepare journal entries to record these transactions for Brad?s Building...

Answered: 1 week ago

Question

★★★★★

The repair time, in hours, for a certain type of laptop is a continuous variable with density function (i) What is the expected time to repair a laptop of this type when it breaks down? (ii) If the...

Answered: 1 week ago

Question

★★★★★

Assume that you have just been hired by Adams, Garitty, and Evans (AGE), a consulting firm that specializes in analyses of firms capital structures and dividend policies. Your boss has asked you to...

Answered: 1 week ago

Question

★★★★★

6. sensitivity and scenario analysis Different techniques for analyzing project risk require different input variables and assumptions. Suppose you are using the scenario analysis technique to...

Answered: 1 week ago

Question

★★★★★

Vaughn Corporation began operations on December 1 , 2 0 2 4 . The only inventory transaction in 2 0 2 4 was the purchase of inventory on December 1 0 , 2 0 2 4 , at a cost of $ 2 4 per unit. None of...

Answered: 1 week ago

Question

★★★★★

What is meant by Career Planning and development ?

Answered: 1 week ago

Question

★★★★★

What are Fringe Benefits ? List out some.

Answered: 1 week ago

Question

★★★★★

The calibration of a scale is checked by weighing a standard $10 \mathrm{~g}$ weight 100 times. Let $\mu$ be the population mean reading on the scale, so that the scale is in calibration if...

Answered: 1 week ago

Question

★★★★★

lw is the instruction with the longest latency on the CPU from Section 4.4. If we modified lw and sw so that there was no offset (i.e., the address to be loaded from/stored to must be calculated and...

Answered: 1 week ago

Question

★★★★★

8. Explain how to price managerial and professional jobs.

Answered: 1 week ago

Question

★★★★★

1. What is the difference between exempt and nonexempt jobs?

Answered: 1 week ago

Question

★★★★★

Is our committee appropriately communicating its decisions? How will shareholders react?

Answered: 1 week ago

Previous Question Next Question