Question
A division of a firm has a net profit of $640,000 before imputed interest and a residual income of $240,000. If a rate of 10
A division of a firm has a net profit of $640,000 before imputed interest and a residual income of $240,000. If a rate of 10 per cent is used to compute imputed interest, calculate the division's return on investment (rounded to a whole number).
| a. | 4% | |
| b. | 10% | |
| c. | 16% | |
| d. | 27% | |
| e. | 35% |
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Wiley CPAexcel Exam Review April Study Guide Regulation 2017
Authors: Wiley
2nd Edition
1119369436, 978-1119369431
