The West Division of Shekarchi Corporation Had Average Operating Assets

question 52

Multiple Choice

The West Division of Shekarchi Corporation had average operating assets of $620,000 and net operating income of $80,100 in March. The minimum required rate of return for performance evaluation purposes is 14%.
-What was the West Division's minimum required return in March?

• A)$80,100
• B)$86,800
• C)$11,214
• D)$98,014

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Definitions:

Mean High Temperature

The average of the highest temperatures observed over a specified period.

Normal Distribution

A symmetric, bell-shaped distribution of values in which the mean, median, and mode are all equal and located at the center of the distribution.

Standard Deviation

Standard deviation is a measure of the amount of variation or dispersion of a set of values; a low standard deviation indicates that the values tend to be close to the mean, while a high standard deviation indicates that the values are spread out over a wider range.

Mean High Temperature

The average of the highest temperatures recorded over a specific period.