Omega Division Had the Following Information: Asset Base in Omega

question 93

Multiple Choice

Omega Division had the following information: Asset base in Omega Division $500,000
Net income in Omega Division $60,000
Weighted average cost of capital 12%
Target ROI 15%
Margin for Omega Division 20%
What is the return on investment of Omega Division?

• A) 12.0%
• B) 25.0%
• C) 88.0%
• D) 833.0%

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Definitions:

Ethical Issues

Moral problems or dilemmas that arise in the context of professional practices or business operations, often requiring careful thought or action.

Price Skimming

A pricing strategy where a seller charges a relatively high price for a product at first, then lowers the price over time.

Customer Behaviour

Patterns and tendencies among consumers that influence their purchasing decisions and interactions with brands.

Competitor Behaviour

The actions and strategies employed by competitors within the same industry, impacting market dynamics and business decisions.