Exhibit 11-3
Dillon Company Has the Following Information Available for One

question 8

Multiple Choice

Exhibit 11-3
Dillon Company has the following information available for one of its divisions:
$\begin{array}{lr}\text { Average operating assets } & \$ 4,000,000 \\\text { Sales } & \$ 4,800,000 \\\text { Return on investment (ROI) } & 30 \%\end{array}$
-Refer to Exhibit 11-3.Dillon requires a minimum return on its investments of 25%.
Based on this information,what is the division's asset turnover (rounded to two decimal places) ?

• A)2.78
• B)0.83
• C)4.00
• D)1.20
• E)None of the answer choices is correct.

---

Definitions:

Break-Even Price

The price level at which an investment must reach for an investor to recover their initial investment without making a profit or incurring a loss.

Call Option

A call option gives the holder the right, but not the obligation, to buy an underlying asset at a specified price within a specific time period.

Premium

The amount by which the price of a financial asset exceeds its par or face value, or alternatively, the cost above the normal price paid to acquire an insurance policy.

Put Option

A financial contract giving the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a predetermined price within a set time frame.