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Dave Inc.'s cost of capital is 13%. The company has provided you with a summary of its annual reports from two of its divisions: Division
Dave Inc.'s cost of capital is 13%. The company has provided you with a summary of its annual reports from two of its divisions: Division A Division B Capital invested $4,750 $8,100 Net income $2,175 $2,500 The manager of Division B is considering a proposal for a new investment that will have the following incremental income and assets over the coming year: Income - $415 Assets - 2,525 If the proposal were accepted, what would Division B's ROI be? Enter your answer as a number with two decimal places. For example, 35% becomes 0.35
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