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The following data are for the Akron Division of Consolidated Rubber, Inc.: Sales $ 750,000 Net operating income $ 45,000 Average operating assets $ 250,000

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

Sales $ 750,000
Net operating income $ 45,000
Average operating assets $ 250,000
Stockholders' equity $ 75,000
Residual income $ 15,000

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

Multiple Choice

  • 30%

  • 12%

  • 15%

  • 6%

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