Sales $1,519,621 Operating Income $108,450 Total Assets (investment) $583,662 Target Rate of Return (Cost of Capital) 10% What is return on investment? Input your answer to 1 decimal place. For example if you calculate .1892 enter 18.9.

Sales $1,519,621 Operating Income $108,450 Total Assets (investment) $583,662 Target Rate of Return (Cost of Capital) 10% What is return on investment? Input your answer to 1 decimal place. For example if you calculate .1892 enter 18.9.

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter14: Security Structures And Determining Enterprise Values

Section: Chapter Questions

Problem 9EP

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Question

Sales	$1,519,621
Operating Income	$108,450
Total Assets (investment)	$583,662
Target Rate of Return (Cost of Capital)	10%

What is return on investment? Input your answer to 1 decimal place. For example if you calculate .1892 enter 18.9.

Definition Definition Percentage gain or loss from a specific investment over time. The rate of return is the difference between the closing and initial values of an investment divided by the initial value of the investment. The closing value includes any intermediate cash flows such as dividends or interest amounts.

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