Asked by Preanna Williams on May 22, 2024
Verified
What was the West Division's minimum required return in August?
A) $45,600
B) $42,200
C) $53,618
D) $8,018
Minimum Required Return
The minimum rate of return that an investor expects to achieve from an investment, considering its risk level.
- Compute and elucidate the lowest necessary rate of return.
Verified Answer
GS
Gurminder SinghMay 22, 2024
Final Answer :
A
Explanation :
Minimum required return = Average operating assets × Minimum required rate of return
= $240,000 × 19% = $45,600
= $240,000 × 19% = $45,600
Learning Objectives
- Compute and elucidate the lowest necessary rate of return.
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