Cornwall Company Has Two Divisions, a and B What Is the Return on Investment for A?
A)18%
B)40

question 120

Multiple Choice

Cornwall Company has two divisions, A and B. Information for each division is as follows: $\begin{array}{lrr}&A&B\\\text { Net earnings for division } & \$ 40,000 & \$ 260,000 \\\text { Asset base for division } & \$ 100,000 & \$ 1,200,000 \\\text { Target rate of return } & 15 \% & 18 \% \\\text { Margin } & 10 \% & 20 \% \\\text { Weighted average cost of capital } & 12 \% & 12 \%\end{array}$ What is the return on investment for A?

• A)18%
• B)40%
• C)20%
• D)15%

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Definitions:

Action Potentials

The rapid rise and fall of electrical voltage across a cell's membrane, allowing neurons to transmit signals along their axons.

Inhibitory Synapses

Connections between neurons that decrease the likelihood of the firing action potential of receiving neuron, thus inhibiting neural activity.

Sensation

The process of sensing through touch, taste, sight, sound, and smell, and how our brains interpret these sensory experiences.

Perception

The process of organizing and interpreting sensory information to understand the environment.