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    Principles of Corporate Finance
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    Exam 12: Agency Problems, Compensation, and Performance Measurement
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    A Firm Has an Average Investment of $10,000 During the Year.During
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A Firm Has an Average Investment of $10,000 During the Year.During

Question 16

Question 16

Multiple Choice

A firm has an average investment of $10,000 during the year.During the same period,the firm generates after-tax income of $1,000.
If the cost of capital is 15%,what is the net return on the investment?


A) 15%
B) -5%
C) 10%
D) 5%

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