Use the following information for the next 5 questions.
Bellingham Division has a required rate of return by corporate headquarters of 20%. The weighted average cost of capital is 12%. You are given the following information for Bellingham's operations for a two-year period:
-The ROI for 2005 was
A) 9.3%
B) 10.0%
C) 3.7%
D) 20.0%

Question

Use the following information for the next 5 questions.
Bellingham Division has a required rate of return by corporate headquarters of 20%. The weighted average cost of capital is 12%. You are given the following information for Bellingham's operations for a two-year period: 
-The ROI for 2005 was
A) 9.3% 
B) 10.0% 
C) 3.7% 
D) 20.0%

Quizplus · Accepted Answer

The ROI for 2005 was calculated to be 9.3%.

Use the Following Information for the Next 5 Questions