Correll Company Has Two Divisions,A and B What Is the Return on Investment for A?
A)15%
B)18

question 84

Multiple Choice

Correll Company has two divisions,A and B.Information for each division is as follows: $\begin{array}{lcc}& \underline{\text { A}}& \underline{\text { B}}\\\text { Net earnings for division } & \$ 40,000 & \$ 260,000 \\\text { Asset base for division } & \$ 100,000 & \$ 1,200,000 \\\text { Target rate of return } & 15 \% & 18 \% \\\text { Margin } & 10 \% & 20 \% \\\text { Weighted average cost of capital } & 12 \% & 12 \%\end{array}$ What is the return on investment for A?

• A)15%
• B)18%
• C)20%
• D)40%

---

Definitions:

Compare Rewards

The act of evaluating the benefits or incentives offered by different options or actions.

Cucumbers

Edible, green fruits from the Cucumis sativus plant, often consumed in salads or as a garnish.

Underbenefited

Getting less than you deserve.

Overbenefited

Getting more than you deserve.