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The following data relates to Logan Electric and its Light Bulb Division. Light Bulb Division sales $7,200,000 Light Bulb Division operating income $720,000 Light Bulb
The following data relates to Logan Electric and its Light Bulb Division.
| Light Bulb Division sales | $7,200,000 |
| Light Bulb Division operating income | $720,000 |
| Light Bulb Division total assets | $4,000,000 |
| Light Bulb Division current liabilities | $520,000 |
| Corporate target rate of return | 18% |
| Corporate weighted average cost of capital | 15% |
| Corporate effective tax rate | 20% |
What is the Light Bulb Division's Return on Investment (ROI)?
| 180.00% | ||
| 13.00% | ||
| 18.00% | ||
| 10.00% |
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Accounting Principles
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso
11th Edition
111856667X, 978-1118566671
