Grady Corporation Provides the Following Financial Information Calculate the Target Rate of Return

question 36

Multiple Choice

Grady Corporation provides the following financial information: $$\begin{array} { | l | r | } \hline \text { Minimum acceptable operating income } & \$ 556,600 \\\hline \text { Average total assets } & \$ 2,000,000 \\\hline \text { Operating income } & \$ 708,000 \\\hline \text { Return on investment } & 35.40 \% \\\hline \text { Net sales } & \$ 900,000 \\\hline\end{array}$$ Calculate the target rate of return.(Round your answer to two decimal places. )

• A)27.83%
• B)78.67%
• C)35.40%
• D)61.84%

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