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Beta Division had the following information: Asset base in Beta Division $400,000 Operating income in Beta Division $ 50,000 Cost of capital 12% Target ROI
Beta Division had the following information:
Asset base in Beta Division | $400,000 |
Operating income in Beta Division | $ 50,000 |
Cost of capital | 12% |
Target ROI | 15% |
Margin for Beta Division | 20% |
If the asset base is decreased by $100,000, with no other changes, the return on investment of Beta Division will be
100.0%.
16.7%.
600.0%.
62.5%.
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