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The 2007 income statement for the east division of the Homegoods Company is as follows: Sales $2,000,000 Operating expenses 1,250,000 Net operating income 750,000 Interest
The 2007 income statement for the east division of the Homegoods Company is as follows: Sales $2,000,000 Operating expenses 1,250,000 Net operating income 750,000 Interest expense 150,000 Earnings before taxes 600,000 Tax expense (40%) 240,000 Net Income $360,000 If this division's invested capital is $3,000,000 then its return on investment is: Answer a. 20%. b. 15%. c. 17%. d. 12%
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