The Tandem Division of the Great Adventures Cycles Company Had

question 49

Multiple Choice

The Tandem division of the Great Adventures Cycles Company had the following results last year (in thousands) . $$\begin{array} { | l | r r | } \hline \text { Sales } & \$ & 4,000,000 \\\hline \text { Operating incare } & \$ & 480,000 \\\hline \text { Total assets } & \$ & 2,000,000 \\\hline \text { Current liabilities } & \$ & 300,000 \\\hline\end{array}$$ Management's target rate of return is 10% and the weighted average cost of capital is 8%.Its effective tax rate is 40%.
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What is the Tandem division's Return on Investment (ROI) ?

• A)7.50%
• B)12.00%
• C)24.00%
• D)200.00%

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Definitions:

Degradable Pollutants

Pollutants capable of being broken down into less harmful substances by natural processes.

Water Volume

The quantity of three-dimensional space occupied by a liquid or gas, often measured in liters, gallons, or cubic meters.

Fish Kills

Events where a significant number of fish die suddenly in a particular area, often due to factors like pollution, lack of oxygen, or disease.

Industrial Chemicals

Substances produced for various industrial and manufacturing processes, often used in creating products or in operations.