Use the information below to answer the following question(s) :
Assume the Cell Phone Division of the First Electronics Corporation had the following results last year (in thousands) . Management's target rate of return is 10% and the weighted average cost of capital is 7%. Its effective tax rate is 30%.
-What is the First Electronics Corporation cell phone division's Return on Investment (ROI) ?
A) 15.00%
B) 25.00%
C) 30.00%
D) 200.00%
Correct Answer:
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