Omega Division had the following information: Asset base in Omega Division $500,
ID: 2511412 • Letter: O
Question
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. 833.0% d. 88.0% 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? 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%
Explanation / Answer
The Answer is (a) 12%
Return on Investment = Net Income / Asset Base
=( $60000 / $500000 ) x 100
= 12 %
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