Selected Data from Division a of Green Company Are as Follows

question 21

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 sales (ROS) is:

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

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Definitions:

Required Return

The return a investor expects to earn on an investment, taking into account the risk associated with it.

Selling

The act of offering goods or services in exchange for money or other compensation.

Dividend

A portion of a company's earnings distributed to shareholders as a return on their investment.

Constant

An unchanging value in an equation or model, or a fixed value that does not vary over time.