Assume Division 1 of the XYZ Company Had the Following

question 70

Multiple Choice

Assume Division 1 of the XYZ Company had the following results last year. Management's required rate of return is 8% and the weighted average cost of capital is 6%. Its effective tax rate is 30%.What is the division's return on investment?

• A)5%
• B)10%
• C)20%
• D)50%

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Diagnostic And Statistical Manual

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