The West Division of Frede Corporation Had Average Operating Assets

question 3

Multiple Choice

The West Division of Frede Corporation had average operating assets of $700,000 and net operating income of $120,800 in December. The minimum required rate of return for performance evaluation purposes is 16%.
-What was the West Division's minimum required return in December?

• A)$112,000
• B)$120,800
• C)$131,328
• D)$19,328