Rose Company has sales of $1,200,000 and operating assets of $800,000 and achieved a 10 percent ROI. 4 If Rose Company increases expenses by $20,000 and sales remain unchanged, what ROI will result? a) 7.5% b) Not able to be calculated from the information provided. c) 14.5%. d) 10%.

Rose Company has sales of $1,200,000 and operating assets of $800,000 and achieved a 10 percent ROI. 4 If Rose Company increases expenses by $20,000 and sales remain unchanged, what ROI will result? a) 7.5% b) Not able to be calculated from the information provided. c) 14.5%. d) 10%.

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter12: Corporate Valuation And Financial Planning

Section: Chapter Questions

Problem 6P

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Question

Rose Company has sales of $1,200,000 and operating assets of $800,000 and
achieved a 10 percent ROI.
If Rose Company increases expenses by $20,000 and sales remain unchanged, what
ROI will result?
a) 7.5%
b) Not able to be calculated from the information provided.
c) 14.5%.
d) 10%.

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