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

question 144

Multiple Choice

Use the information below to answer the following question(s) :
The Tandem division of the Great Adventures Cycles Company had the following results last year (in thousands) .

Management's target rate of return is 10% and the weighted average cost of capital is 8%. Tandem's effective tax rate is 35%.
-What is the Tandem division's Return on Investment (ROI) ?

• A) 7.50%
• B) 12.00%
• C) 24.00%
• D) 200.00%

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Definitions:

Intrapreneurship

The practice of developing new products, services, or initiatives within an existing organization to drive innovation.

Renewal

The process of extending the period of validity or effectiveness of something, or revitalizing something that has diminished or expired.

Benefit Corporation

A form of organization certified by the nonprofit B Lab that ensures strict standards of social and environmental performance, accountability, and transparency are met.

Social Performance

A measure of an organization’s ability to meet its social objectives, reflecting its impact on stakeholders, communities, and society as a whole.