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The income statement for the Commercial Construction Division of the Kenyon Company is as follows: Category Value Sales $272,000 Operating expenses 132,000 Net operating income
The income statement for the Commercial Construction Division of the Kenyon Company is as follows:
Category Value
Sales $272,000
Operating expenses 132,000
Net operating income 140,000
Interest expense 20,000
Earnings before taxes 120,000
Income tax expense (30%) 36,000
Net income $84,000
If this division's invested capital is $500,000, how much is its return on investment?
a.19.6%
b.16.8%
c.20.8%
d.14.0%
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