Interest-taxes and preferred stock dividends

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The owners of the clinic in exercise 11.1 invested $400,000. What is the return on investment? Is it adequate? ROI = (Net Profit/Cost of Investment) x 100 – Net profit represents the number of sales dollars remaining after all operating expenses, interest, taxes, and preferred stock dividends (but not common stock dividends) have been deducted from a company’s total revenue.

Reference no: EM131091580

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