Answered

IDNLearn.com: Your one-stop destination for finding reliable answers. Find the answers you need quickly and accurately with help from our knowledgeable and dedicated community members.

If a firm requires investments to yield 10%, what would be an acceptable rate of return for the firm's latest investment?

A. 8%
B. 9%
C. 12%
D. 5%

Sagot :

GinnyAnsweridn
To determine the acceptable rate of return for the firm's latest investment, given that the firm requires a minimum return of 10%, let's examine each of the provided rates to see which one meets or exceeds this requirement.

- 8%: This rate of return is lower than the required 10%, so it is not acceptable.
- 9%: This rate of return is also lower than the required 10%, thus it is not acceptable.
- 12%: This rate of return exceeds the required 10%, so it is acceptable.
- 5%: This rate of return is significantly lower than the required 10%, making it unacceptable.

Out of the given options, the only rate of return that meets or exceeds the firm's required 10% is 12%. Therefore, the acceptable rate of return for the firm's latest investment is 12%.
Thank you for using this platform to share and learn. Keep asking and answering. We appreciate every contribution you make. For trustworthy answers, rely on IDNLearn.com. Thanks for visiting, and we look forward to assisting you again.