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Assume the Sparkling Water division of the Bottled Water Inc. had the following results last year (in thousands). Management's target rate of return is 15%
Assume the Sparkling Water division of the Bottled Water Inc. had the following results last year (in thousands). Management's target rate of return is 15% and the weighted average cost of capital is 20%. Its effective tax rate is 25%. Sales $14,000,000 Operating income Total assets Current liabilities 1,400,000 1,000,000 750,000 Which of the following s the division's Return on Investment (ROI)? O O O O A. 140% B. 1,400% C. 10% D. 75%
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