Beta Division Had the Following Information If the Asset Base Is Decreased by $100,000,with No Other

question 49

Multiple Choice

Beta Division had the following information: $$\begin{array} { l r } \text { Asset base in Beta Division } & \$ 400,000 \\\text { Net income in Beta Division } & \$ 50,000 \\\text { Weighted average cost of capital } & 12 \% \\\text { Target RoI } & 15 \% \\\text { Margin for Beta Division } & 20 \%\end{array}$$ If the asset base is decreased by $100,000,with no other changes,what will be the return on investment of Beta Division?

• A)16.7%
• B)62.5%
• C)100.0%
• D)600.0%

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Definitions:

Cultural Backgrounds

Refers to the cultural factors, including traditions, languages, beliefs, and customs, that influence an individual's perceptions and behaviors.

Language

A system for combining symbols (such as words) so that an unlimited number of meaningful statements can be made for the purpose of communicating with others.

Therapeutic Alliance

The relationship between therapist and client that develops as a warm, caring, accepting relationship characterized by empathy, mutual respect, and understanding.

Psychotherapy

Therapy for mental disorders in which a person with a problem talks with a psychological professional.