Solister, Inc If the Asset Base Is Decreased by $185,450, with No

question 97

Multiple Choice

Solister, Inc., had the following information: $$\begin{array} { l r } \text { Asset base in Solister, Inc. } & \$ 625,500 \\\text { Net income in Solister, Inc. } & \$ 75,950 \\\text { Weighted average cost of capital } & 12 \% \\\text { Target return on investment (ROI) } & 15 \% \\\text { Margin for Solister, Inc. } & 20 \%\end{array}$$ If the asset base is decreased by $185,450, with no other changes, what will the return on investment of Solister, Inc. be? (Round the answer to two decimal places.)

• A)5.79%
• B)12.50%
• C)17.26%
• D)30.00%

---

Definitions:

Entice

To attract or tempt someone into doing something or engaging in some activity by offering potential benefit or pleasure.

Perceived Benefit

The personal value or advantage that consumers believe they will receive from using a product or service.

Universal Set

Includes all possible choices for a product category.

Camera Options

Various features or settings available on a camera that allow the user to customize how photographs are taken, such as aperture, shutter speed, and ISO.