Selected Data from Division a of Green Company Are as Follows

question 50

Multiple Choice

Selected data from Division A of Green Company are as follows:
$\begin{array}{lcc}\text { Sales } & \$ & 500,000 \\\text { Average investment } & \$ & 300,000 \\\text { Operating income } & \$ & 60,000 \\\text { Minimum rate of return } & & 15 \%\end{array}$
Division A's return on investment (ROI) is:

• A)1.8%.
• B)7.5%.
• C)12.0%.
• D)20.0%.
• E)48.0%.

Understand the concepts of the elaboration likelihood model and how different routes of persuasion affect attitude change.

Learn about the role of self-perception in attitude formation and change.

Recognize how social roles and stereotypes influence behavior and attitudes.

Grasp the theory of cognitive dissonance and its implications for attitude change.

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Definitions:

Dividend Payment

A disbursement of a portion of a company's earnings decided by the board of directors to its shareholders.

Residual Dividend Policy

A strategy where dividends are paid to shareholders from the leftover or residual earnings after all operational and expansion costs are covered.

Target Capital Structure

The ideal mix of debt, preferred stock, and common equity that a company aims to hold to minimize its cost of capital.

Forecasted Net Income

An estimated calculation of a company's earnings after all expenses and taxes have been subtracted from revenue for a given future period.