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Question 7

Multiple Choice

The next questions refer to the following.
A publicly traded firm has 4 million shares of stock outstanding, with a current share price of $50. The value of its plant and equipment is $250 million. Its profit annually is $50 million.
-The average rate of return on existing capital is


A) 5%
B) 10%
C) 15%
D) 20%
E) 25%

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