Althea Corporation's Perfume Division Has a Segment Margin Is $85,000

question 73

Multiple Choice

Althea Corporation's Perfume division has a segment margin is $85,000 for the current reporting period.Total assets at the beginning of the period were $800,000 and $900,000 at the end of the period.What is the division's ROI?

• A) 9.44%
• B) 10%
• C) 10.625%
• D) None of these ans choices are correct

---

Definitions:

Direct Costs

Expenses that can be directly attributed to the production of specific goods or services.

Underpricing

The phenomenon where new securities, such as stocks or bonds, are priced below their true market value at the initial offering, often leading to an immediate increase in their value when traded.

Equity Include

The incorporation of ownership interest or stake in a company through the holding of its equity or stocks.

Seasoned Equity Offering

An issuance of stock by a company after its initial public offering to raise additional capital.