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The Box Manufacturing Division of the Allied Paper Company reported the following results from the past year. Shareholders require a return of 8%. Management calculated
The Box Manufacturing Division of the Allied Paper Company reported the following results from the past year. Shareholders require a return of 8%. Management calculated a weighted average cost of capital (WACC) of 3%. Allied's corporate tax rate is 35%. Sales $500,000 Operating income 150,000 Total assets 1,400,000 Current liabilities 800,000 What is the division's Return on Investment (ROI)? ... O A. 10.71% OB. 30.00% O C. 160.00% OD. 35.71%
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