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Case: Chocolate Enterprise (question 15) Chocolate Enterprise has a divisionalized organizational structure. The current AOI for Chocolate Enterprise as a whole is 20%, and Chocolate

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Case: Chocolate Enterprise (question 15) Chocolate Enterprise has a divisionalized organizational structure. The current AOI for Chocolate Enterprise as a whole is 20%, and Chocolate Enterprise has a cost of capital of 23% on all Investments. The most successful division within Chocolate Enterprise is the Boxed Candy division. Currently the Boxed Candy division has total assets of 490 000 with divisional profit of 89 600. The manager of the Boxed Candy division is considering the purchase of a small company called Truffles Inc. The purchase of Truffles Inc. will require an Investment of 210 000 and with the synergy between Truffles Inc. and the Boxed Candy division, the Boxed Candy's divisional profit will increase by 22 400. The divisional managers are awarded if they manage to increase their division's ROI. The ROI for the Boxed Candy Division, after the purchase of Truffles Inc. would be: [Round your answer to the nearest Integer] %

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