Question
Bellingham Division has a required rate of return by corporate headquarters of 20%. The weighted average cost of capital is 12%. You are given
Bellingham Division has a required rate of return by corporate headquarters of 20%. The weighted average cost of capital is 12%. You are given the following information for Bellingham's operations for a two-year period: Current assets Long-term assets Accumulated amortization Current liabilities Long-term debt Operating income for the year Tax rate The ROI for 2015 was: A. 20.0% B. 3.7% OC. 9.3 % OD. 10.0% 2015 $50,000 200,000 60,000 40,000 100,000 19,000 40% 2014 $ 60,000 204,000 44,000 20,000 140,000 21,000 40%
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Macroeconomics
Authors: Robert J Gordon
12th edition
138014914, 978-0138014919
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