The following data are for the Akron Division of Consolidated Rubber, Inc.:

Sales	$	760,000
Net operating income	$	47,000
Average operating assets	$	260,000
Stockholders' equity	$	76,000
Residual income	$	16,000

For the past year, the minimum required rate of return was:

Multiple Choice

6.18%

32.00%

11.92%

16.30%