Aeralia Inc What Is the Maryland Division's Return on Investment?
A)44

question 15

Multiple Choice

Aeralia Inc. ,has two regional offices.The data for each are as follows:
$\begin{array}{lll}&\text { Maryland}&\text { New lersey }\\\text { Revenues } & \$ 292,000 & \$ 302,000 \\\text { Operating assets } & 2,900,000 & 4,800,000 \\\text { Net operating income } & 1,300,000 & 1,500,000\end{array}$
What is the Maryland Division's return on investment?

• A)44.8%
• B)10.1%
• C)31.3%
• D)22.5%

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Definitions:

Average Operating Assets

The average value of the assets used in the normal operations of a business, calculated over a specific period.

Market Price

The current value at which an asset or service can be bought or sold in the marketplace.

Preferred Dividends

The dividends that are allocated and paid to preferred shareholders before any dividends can be distributed to common shareholders.

Retained Earnings

The portion of net income not distributed as dividends to shareholders, but instead reinvested in the company or kept as reserve.