NUBD Division reported a residual income of P200,000 for the year just ended. The division had P8,000,000 of invested capital and P1,000,000 of income. On the basis of this information, the required rate of return was: (round-off to 1 decimal places

NUBD Division reported a residual income of P200,000 for the year just ended. The division had P8,000,000 of invested capital and P1,000,000 of income. On the basis of this information, the required rate of return was: (round-off to 1 decimal places

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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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