The Box Manufacturing Division of the Allied Paper Company reported the following results from the past year. Shareholders require a return of 9%. Management calculated a weighted-average cost of capital (WACC) of 7%. Allied's corporate tax rate is 30%. 
What is the division's Return on Investment (ROI) ?
A) 20.00%
B) 10.00%
C) 88.89%
D) 50.00%
Correct Answer:
Verified
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