Omega Division had the following information: Asset base in Omega Division $500,000
Net income in Omega Division $60,000
Weighted average cost of capital 12%
Target ROI 15%
Margin for Omega Division 20%
What is the return on investment of Omega Division?
A) 12.0%
B) 25.0%
C) 88.0%
D) 833.0%

Question

Quizplus · Accepted Answer

ROI = Net income / Asset base * 100= 60,000 / 500,000 * 100= 12%

Omega Division Had the Following Information: Asset Base in Omega