A. nominal rate of return
B. accrual accounting rate of return
C. real rate of return
D. required rate of return
Related Mcqs:
- The rate of required return to cover the risk of investment, in absence of inflation is classified as ____________?
A. real rate of return
B. required rate of return
C. nominal rate of return
D. none of above - The rate of return, which is made up of risk free and business risk element is known as _____________?
A. nominal rate of return
B. accrual accounting rate of return
C. real rate of return
D. required rate of return - If the real rate is 16% and an inflation rate is 8%, then the nominal rate of return will be __________?
A. 27.28%
B. 25.28%
C. 22.28
D. 21.28 - The decrease in purchasing power of any monetary unit such as euro, dollars etc. is classified as ___________?
A. net investment parity
B. inflation
C. purchasing parity
D. buying parity - If the nominal rate is 26% and the inflation rate is 12%, then the real rate can be __________?
A. 13.75%
B. 11.65%
C. 12.50%
D. 13.50% - If the invested capital is $150000 and target rate of return on investment is 16%, then the targeted annual operating income would be ___________?
A. $27,000
B. $26,000
C. $24,000
D. $25,000 - An investment is multiplied to required rate of return, to calculate: _____________?
A. congruent cost of investment
B. transfer cost of investment
C. operating cost of investment
D. imputed cost of investment - If the required rate of return is 13%, operating income is $375000 and the total investment is $2650000, then the residual income would be ____________?
A. $30,500
B. $20,500
C. $25,500
D. $32,500 - The return on investment is also known as _____________?
A. accrual accounting rate of return
B. accounting rate of return
C. nominal rate of return
D. both a and b - If the net initial investment is $985000, returned working capital is $7500, then an average investment over five years will be ___________?
A. $596,300
B. $485,300
C. $496,250
D. $486,250
