Use the Information Below to Answer the Following Question(s)

question 121

Multiple Choice

Use the information below to answer the following question(s) :
The Beverage Division of Natural Foods Corporation had sales of $4,200,000 and operating income of $840,000 last year. The total assets of the Beverage Division were $1,680,000, while current liabilities were $360,000. Natural Foods Corporation's target rate of return is 9%, while its weighted average cost of capital is 7%. The effective tax rate for the company is 40%.
-What is the Beverage Division's Return on Investment (ROI) ?

• A) 250.00%
• B) 50.00%
• C) 20.00%
• D) 8.57%

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Definitions:

Primary Tastes

The basic taste categories from which all tastes are derived, typically including sweet, sour, salty, bitter, and umami.

Brothy

Pertaining to a clear, soup-like consistency with a thin, liquid texture.

Oval Window

A membrane-covered opening that leads from the middle ear to the cochlea of the inner ear and is involved in the process of hearing.

Eardrum

A thin membrane that separates the external ear from the middle ear, vibrating in response to sound waves and aiding in the process of hearing.