Mycrux Company Had the Following Information What Is the Return on Investment of Mycrux Company? (Round

question 80

Multiple Choice

Mycrux Company had the following information: $\begin{array}{lr}\text { Asset base in Mycrux Company } & \$ 987,500 \\\text { Net income in Mycrux Company } & \$ 105,700 \\\text { Weighted average cost of capital } & 12 \% \\\text { Target retum on investment (ROI) } & 15 \% \\\text { Margin for Mycrux Company } & 20 \%\end{array}$ What is the return on investment of Mycrux Company? (Round the answer to two decimal places.)

• A)10.70%
• B)15.00%
• C)20.00%
• D)9.34%

---

Definitions:

Franchise Fee

An upfront payment made by a franchisee to a franchisor for the rights to use the franchisor's brand and business model.

Shirking

The act of avoiding work or responsibilities, often covertly, within an employment context.

Franchising

A business model allowing individuals or entities to operate a business under the name and system of an established brand in exchange for a fee and ongoing royalties.

Franchisee

An individual or business entity that purchases the right to operate a branch of a franchise using the franchisor’s trademarks, systems, and business model.