The R&B Division of MoTown Recording Corporation defines return as after-tax income and had the following results last year. Sales $10,000,000 Operating income $ 2,200,000 Average total invested capital $4,000,000 Current liabilities $ 2,500,000 Management's target rate of return is 12% and the weighted average cost of capital is 9%. Its effective tax rate is 40%. Calculate the return on investment (ROI).
The R&B Division of MoTown Recording Corporation defines return as after-tax income and had the following results last year. Sales $10,000,000 Operating income $ 2,200,000 Average total invested capital $4,000,000 Current liabilities $ 2,500,000 Management's target rate of return is 12% and the weighted average cost of capital is 9%. Its effective tax rate is 40%. Calculate the return on investment (ROI).
Chapter12: Balanced Scorecard And Other Performance Measures
Section: Chapter Questions
Problem 3PA: Macon Mills is a division of Bolin Products. Inc. During the most recent year, Macon had a net...
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The R&B Division of MoTown Recording Corporation defines return as after-tax income and had the following results last year.
Sales |
$10,000,000 |
Operating income |
$ 2,200,000 |
Average total invested capital |
$4,000,000 |
Current liabilities |
$ 2,500,000 |
Management's target
Calculate the
IMPORTANT: Provide your answer in the following format: 0.## (Your answer must be in decimal format).
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