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Beta Division had the following information: Investment in Beta Division $400,000 Operating Profit in Beta Division $50,000 Weighted average cost of capital 12% Target ROI
Beta Division had the following information: Investment in Beta Division $400,000 Operating Profit in Beta Division $50,000 Weighted average cost of capital 12% Target ROI 15% Profit Margin % for Beta Division 20% 35. If the division investment is decreased by $100,000, with no other changes, the return on investment of Beta Division will be a. 100.0% b. 16.7% c. 600.0% d. 62.5%
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