Suppose the Operating Asset Turnover Ratio Increased by 35% and the Margin

question 142

Multiple Choice

Suppose the operating asset turnover ratio increased by 35% and the margin increased by 25%. What would be the effect on the divisional ROI?

• A) It would decrease by 60%.
• B) It would decrease by 50%.
• C) It would increase by 20%.
• D) It would increase by 69%.

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