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Use the Following Information for the Next 3 Questions

question 77

Multiple Choice

Use the following information for the next 3 questions.
Chicago Division has a required rate of return of 15%. The weighted average cost of capital is 10%. Information for Chicago Divisions operations over the past 2 years follows. Use the following information for the next 3 questions. Chicago Division has a required rate of return of 15%. The weighted average cost of capital is 10%. Information for Chicago Divisions operations over the past 2 years follows.   -What was the Chicago Division ROI for 20x5 (rounded to nearest 0.1%) ? A)  11.2% B)  13.2% C)  15.5% D)  16.0%
-What was the Chicago Division ROI for 20x5 (rounded to nearest 0.1%) ?


Definitions:

Profits

The financial gain remaining after subtracting all expenses, taxes, and costs from total revenue.

Revenues

The total amount of money received by a company for goods sold or services provided during a specific time period.

Assets Test

A means of determining eligibility for certain government assistance programs based on the value of an individual's or entity's assets.

Reportable Segments

Components of an enterprise about which separate financial information is available and is evaluated regularly by the chief decision-maker in deciding how to allocate resources.

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