Test Exam Module 5 ch 10 11 This Question 2 pts 1 of 11 0 c

Test: Exam (Module 5 - ch. 10, 11) This Question: 2 pts 1 of 11 (0 complete) ? | ? Selected financial data for the Photocopies Division of Elizabeth\'s Business Machines is as follows Sales Operating income Total assets Current liabilities Required rate of return Weighted average cost of capital $7,100,000 $1,420,000 $2,540,000 $310,000 12% 8% What is the Photocopier Division\'s return on investment? A. 437% B. OC. OD. 280.00% 559136 20.00% ea

Solution

Answer C. 55.91% Return On Investment = Operating Profit / Total Assets Return On Investment = $1,420,000 / $2,540,000 Return On Investment = 55.91%