The Following Information Is Reported for the Current Year for North

question 96

Multiple Choice

The following information is reported for the current year for North Atlantic Division of XT Enterprises: $$\begin{array} { l r } \text { Sales } & \$ 3,800,000 \\\text { Interest expense } & \$ 250,000 \\\text { Net income } & \$ 500,000 \\\text { Total assets } & \$ 5,000,000 \\\text { Noninterest-bearing current liabilities } & \$ 400,000 \\\text { Cost of capital } & 8 \% \\\text { Required rate of return } & 14 \% \\\text { Tax rate } & 30 \%\end{array}$$ How much is the division's return on investment rounded to one decimal?

• A) 16.3%
• B) 7.1%
• C) 14.7%
• D) 12.5%

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Definitions:

Appellate Opinions

Judicial decisions or written explanations by appellate courts regarding the resolution of appeals.

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