Use the information below to answer the following question(s):
The Tandem division of the Great Adventures Cycles Company had the following results last year (in thousands).

Management's target rate of return is 10% and the weighted average cost of capital is 8%. Tandem's effective tax rate is 35%.
-What is the Tandem division's Return on Investment (ROI)?
A) 7.50%
B) 12.00%
C) 24.00%
D) 200.00%

Question

Use the information below to answer the following question(s):
The Tandem division of the Great Adventures Cycles Company had the following results last year (in thousands).
  
Management's target rate of return is 10% and the weighted average cost of capital is 8%. Tandem's effective tax rate is 35%.
-What is the Tandem division's Return on Investment (ROI)?
A) 7.50% 
B) 12.00% 
C) 24.00% 
D) 200.00%

Quizplus · Accepted Answer

ROI is calculated as (Net Income / Investment) * 100. Without specific numbers for Tandem division's net income or investment, it's impossible to calculate the exact ROI. However, if this is a question from a provided dataset or scenario not included in your question, the correct answer would typically be derived from applying the formula to the given figures. Since no numerical data was provided, I can't apply the formula, but choice C (24.00%) is marked as correct based on the assumption that this answer is linked to a specific dataset or scenario not shared in your question.

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