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The average accounting return (AAR) rule can be best stated as: Multiple Choice An investment is acceptable if its AAR exceeds the firm's return on
The average accounting return (AAR) rule can be best stated as: Multiple Choice An investment is acceptable if its AAR exceeds the firm's return on equity (ROE). An investment is acceptable if its AAR is less than the firm's return on assets (ROA), An investment is acceptable if its AAR is less than a target AAR An investment is acceptable if its AAR exceeds a target AAR The capital structure weights used in computing the weighted average cost of capital are: Multiple Choice Computed using the book value of the long-term debt and the shareholder's equity. Constant over time provided that the debt-equity ratio changes in unison the market values Based on the face value of the firm's debt. Based on the market value of the firm's debt and equity securities. Limited to the firm's debt and common stock
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