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The Najacht Division of the Rassbach Company Has a Return

question 75

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The Najacht Division of the Rassbach Company has a return on investment (ROI) of 12%,sales of $200,000,and an asset turnover of 2.0.What was Najacht's operating income?


Definitions:

Payout Ratio

The ratio of income distributed to shareholders in the form of dividends, usually represented as a percent.

Dividend Payout Ratio

The percentage of earnings paid to shareholders in dividends, indicating how much money a company returns to shareholders vs. retaining.

Internal Growth Rate

The maximum rate at which a company can expand internally without needing to obtain additional external financing.

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