Reference: 12-07
the Following Selected Data Pertain to the Belt

question 32

Multiple Choice

Reference: 12-07
The following selected data pertain to the belt division of Allen Corp. for last year: $$\begin{array} { | l | l | } \hline \text { Sales } & \$ 500,000 \\\hline \text { Average operating assets } & \$ 200,000 \\\hline \text { Net operating income } & \$ 80,000 \\\hline \text { Turnover } & 2.5 \\\hline \text { Minimum required return } & 20 \% \\\hline\end{array}$$
-In 2003 the real estate market experienced an all-time high revenue with a net income of $45 billion with investment of $10 billion. What is the ROI for the real estate industry?

• A)5.44.
• B)14.2.
• C)6.22.
• D)4.5.

---

Definitions:

Wealth Creation

The process of generating more assets and money through various means such as investment, entrepreneurship, and economic growth, contributing to increased economic value.

Dependency Theory

A theory suggesting that global inequality is due to the exploitation of peripheral and semi-peripheral countries by core countries.

Modernization Theory

A theory in sociology that suggests societies progress linearly from traditional to modern states through processes of industrialization and democratization.

Underdevelopment

Underdevelopment is the condition in which a country or region suffers from a lack of economic progress, often marked by poverty and lower standards of living.