QUESTION 2 The following information pertains to Mario Corporation for 2020: Revenues $950,000 Variable Costs 575,000 Fixed Costs 336,500 Average invested capital 350,000 Imputed interest rate 10% The return on investment (ROI) was: 4% 10% 11% 37% some other answer

QUESTION 2 The following information pertains to Mario Corporation for 2020: Revenues $950,000 Variable Costs 575,000 Fixed Costs 336,500 Average invested capital 350,000 Imputed interest rate 10% The return on investment (ROI) was: 4% 10% 11% 37% some other answer

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter14: Security Structures And Determining Enterprise Values

Section: Chapter Questions

Problem 8EP

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QUESTION 2

The following information pertains to Mario Corporation for 2020:

Revenues $950,000

Variable Costs 575,000

Fixed Costs 336,500

Average invested capital 350,000

Imputed interest rate 10%

The return on investment (ROI) was:

		4%
		10%
		11%
		37%
		some other answer

Definition Definition Percentage gain or loss from a specific investment over time. The rate of return is the difference between the closing and initial values of an investment divided by the initial value of the investment. The closing value includes any intermediate cash flows such as dividends or interest amounts.

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