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

Sales	$	820,000
Net operating income	$	59,000
Average operating assets	$	320,000
Stockholders' equity	$	82,000
Residual income	$	22,000

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

Multiple Choice

• 7.20%

• 44.00%

• 11.56%

• 23.10%