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Assume the Air Conditioning Division of the General Appliance Corporation

question 185

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Assume the Air Conditioning division of the General Appliance Corporation had the following results last year (in thousands) . Management's target rate of return is 15% and the weighted average cost of capital is 10%. Its effective tax rate is 35%. Assume the Air Conditioning division of the General Appliance Corporation had the following results last year (in thousands) . Management's target rate of return is 15% and the weighted average cost of capital is 10%. Its effective tax rate is 35%.   What is the division's Return on Investment (ROI) ? A) 400.00% B) 20.00% C) 80.00% D) 32.80% What is the division's Return on Investment (ROI) ?


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