For the Period Just Ended, Techno Corporation's Stocker Division Reported

question 46

Multiple Choice

For the period just ended, Techno Corporation's Stocker Division reported profit of $54 million and invested capital of $450 million. Assuming an imputed interest rate of 10%, which of the following choices correctly denotes Stocker's return on investment (ROI) and residual income? $$\begin{array}{l}\begin{array} { l l l } & \text { ROI } & \text { Residual Income } \\\text { A. } & 12.0 \% & \$ 9 \text { million } \\\text { B. } & 12.0 \% & \$ ( 9 \text { million } ) \\\text { C. } & 10.0 \% & \$ 9 \text { million } \\\text { D. } & \$ 9 \text { million } & 12 \%\end{array}\\\text { E. } \quad \text { None of the other answers are correct. }\end{array}$$

• A) Choice A
• B) Choice B
• C) Choice C
• D) Choice D
• E) Choice E

---

Definitions:

Southern

Pertaining to or characteristic of the South, a region in the United States known for its distinct cultural, historical, and social traits.

Greensboro Sit-in

A civil rights protest in 1960 where African American students sat at a segregated Woolworth's lunch counter in Greensboro, North Carolina, demanding service.

Arms Race

A competition between nations for superiority in the development and accumulation of weapons, especially between the United States and the Soviet Union during the Cold War.

Lunch Counter

A counter, typically in a diner or pharmacy, where customers can sit and order food, historically significant in the American civil rights movement due to sit-ins at segregated counters.