Figure 19-3
the Following Results for the Year Pertain to the Maddox

question 38

Multiple Choice

Figure 19-3
The following results for the year pertain to the Maddox Division of Ryan Ltd.: $\begin{array}{lr}\text { Sales } & E 640,000 \\\text { Variable expenses } & 160,000 \\\text { Fixed expenses } & 300,000\end{array}$ The weighted average cost of capital is 12 per cent. The firm's minimum required rate of return is 14 per cent. Taxes for the firm are 40 per cent.
-Refer to Figure 19-3. If average operating assets are £1,000,000, return on investment for the Maddox Division is

• A)48%.
• B)34%.
• C)18%.
• D)16%.

---

Definitions:

Ethical Decision

A choice made based on moral principles and values, often considered in professional and personal scenarios to achieve integrity.

Market Research

The process of gathering, analyzing, and interpreting information about a market, including information about potential customers and competitors.

Gambler's Fallacy

The incorrect belief that future probabilities are altered by past events, typically in the context of random sequences.

Appeals to Pity

A rhetorical strategy where an argument is made by invoking sorrow or compassion to persuade an audience.