Question
Terra Company has two divisions, the Retail Division and the Wholesale Division. The following information was gathered for the two divisions for the current year:
Terra Company has two divisions, the Retail Division and the Wholesale Division. The following information was gathered for the two divisions for the current year:
| Retail Division | Wholesale Division | ||||||
| Operating income | $ | 7,600,000 | $ | 4,100,000 | |||
| Operating assets | $ | 37,600,000 | $ | 17,600,000 | |||
Assuming that these are the only divisions of Terra Company, what is the ROI for the company as a whole?
Multiple Choice
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20.21%
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21.20%
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23.30%
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43.51%
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Corporate Finance With Connect Access Card
Authors: Stephen Ross ,Randolph Westerfield ,Jeffrey Jaffe
10th Edition
1259672484, 978-1259672484
