Alpha Division
Alpha Division Had the Following Information -Refer to Alpha Division

question 113

Multiple Choice

Alpha Division
Alpha Division had the following information: $$\begin{array} { l l } \text { Asset base in Alpha Division } & \$ 800,000 \\\text { Net income in Alpha Division } & \$ 100,000 \\\text { Cost of capital } & 12 \% \\\text { Target ROI } & 15 \% \\\text { Margin for Alpha Division } & 20 \%\end{array}$$
-Refer to Alpha Division. Suppose the asset base is decreased by $200,000, with no other changes. What would be the return on investment?

• A) 16.7%
• B) 62.5%
• C) 100.0%
• D) 600.0%

---

Definitions:

Stability Of Personality

The degree to which a person's character traits remain consistent over time, irrespective of situational changes.

63 Years

A duration of time equivalent to sixty-three annual cycles, often used to denote a specific age or period of history.

Producing Sperm

The process by which male gonads (testes) generate spermatozoa, the male reproductive cells.

Embryonic Development

The process by which an embryo forms and develops, from fertilization to the fetal stage.