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A Firm's After-Tax Operating Income Was $1,000,000 in 2013

Question 55

Multiple Choice

A firm's after-tax operating income was $1,000,000 in 2013. It started the year with a total capitalization of $8,000,000 and ended the year with a total capitalization of $9,000,000. The additional capital raised during 2013 started to affect the operating income in 2014. Which value best represents the return on capital for 2013?


A) 12.5%
B) 11.8%
C) 11.1%
D) 10.0%

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