Asked by Lauren Knight on May 08, 2024
Verified
What was the Consumer Products Division's minimum required return in May?
A) $81,300
B) $8,130
C) $88,130
D) $80,000
Minimum Required Return
The lowest acceptable rate of return on an investment, often determined by the investor's cost of capital.
Consumer Products Division
A segment of a business that focuses on the development, marketing, and sale of products directly to consumers.
- Acquire knowledge about the concept of minimum required rate of return.
Verified Answer
JB
James BeltranMay 10, 2024
Final Answer :
D
Explanation :
Minimum required return = Average operating assets × Minimum required rate of return
= $800,000 × 10% = $80,000
= $800,000 × 10% = $80,000
Learning Objectives
- Acquire knowledge about the concept of minimum required rate of return.
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