Ask Question
BusinessBusiness
12 February, 17:51

What is the formula for the annual rate of return?

A : Annual Cash Flow : Cost of Capital Investment.

B : Expected Annual Net Income : Cost of Capital Investment.

C : Annual Cash Flow : Average Investment.

D : Expected Annual Net Income : Average Investment.

+3
Answers (1)
  1. 12 February, 20:44
    0
    Answer: Option D

    Explanation: In simple words, annual rate of return refers to the amount of profit that an individual or an entity made in their investments for a specified period of time, generally a year. This ratio is considered to be a profitability ratio and is important for investors while making decisions to whether invest or not in a company.

    As it is the rate of return on investments made, it is computed by dividing the expected annual income with the average investment. Average investment refers to the average of beginning and ending balance of investment made in the time period for which the ratio is being computed.

    Hence from the above we can conclude that the correct option is D.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “What is the formula for the annual rate of return? A : Annual Cash Flow : Cost of Capital Investment. B : Expected Annual Net Income : Cost ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
How often do a deers antles fall of
Answers (2)
Due to the nature of the patent laws on pharmaceuticals, the market for such drugs A. switches from monopolistic to competitive once the firm's patent runs out. B. switches from competitive to monopolistic once the firm's patent runs out. C.
Answers (1)
Nash's Trading Post, LLC sells merchandise on account for $1200 to Morton Company with credit terms of 2/7, n/30. Morton Company returns $500 of merchandise that was damaged, along with a check to settle the account within the discount period.
Answers (1)
Nina Corp. had the following net income (loss) the first three years of operation: $6,700, ($1,200), and $3,800. If the Retained Earnings balance at the end of year three is $700, what was the total amount of dividends paid over these three years?
Answers (1)
Dq 12. corporation p owns 85 percent of the outstanding stock of corporation r. this year, employees of corporation r performed extensive management services for corporation p.
Answers (1)
New Questions in Business
If the consumption function is C = 100 + 0.75Y and planned investment spending is 500 , what will be the equilibrium level of output? Ye = $ nothing. (Enter your response as an integer.)
Answers (1)
An online medicaladvice company just completed an IPO with an investment bank on a firm-commitment basis. The firm issued 5 million shares of common stock, and the underwriting fees were $2.10 per share. The offering price was $27.90 per share.
Answers (1)
Which of the following is an example of how the principle of beneficence can be applied to a study employing human subjects? Ensuring that the selection of subjects includes people from all segments of the population.
Answers (1)
Match the following definitions with the correct term 1. Delocalization of food production and consumption connections 2. The process of learning culturally specific preferences passed from generation to generation 3.
Answers (1)
Adobe Systems Incorporated reported the following accounts and amounts (in millions) in its financial statements for the year ended November 30, 2013.
Answers (1)
Home » Business » What is the formula for the annual rate of return? A : Annual Cash Flow : Cost of Capital Investment. B : Expected Annual Net Income : Cost of Capital Investment. C : Annual Cash Flow : Average Investment.
Sign Up Forgot Password?