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Alcar Corporation had the following results for its electronic division last year: Sales $6,000,000 Operating income 900,000 Total liabilities 2,250,000 Total stockholders' equity 750,000 Management
Alcar Corporation had the following results for its electronic division last year:
Sales $6,000,000
Operating income 900,000
Total liabilities 2,250,000
Total stockholders' equity 750,000
Management target rate of return is 10% and weighted average cost of capital is 7%. Whatis the division's Return on Investment(ROI)?
a. 15%.
b. 25%.
c. 30%.
d. 200%.
Note: please show answer how it is calculated.
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