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Assume the Air Conditioning division of the General Appliance Corporation had the following results last year (in thousands) Management's target rate of return is 20%
Assume the Air Conditioning division of the General Appliance Corporation had the following results last year (in thousands) Management's target rate of return is 20% and the weighted average cost of capital is 30%. Its effective tax rate is 35%. Sales Operating income Total assets Current liabilities $14,000,000 3,500,000 1,500,000 790,000 What is the division's Retun on Investment (ROI)? A. B. C. D. 233.33% 52.67% 25%
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