Question: The following information is reported for the current year for North Atlantic Division of XT Enterprises: Sales $3,800,000 Interest expense $250,000 Net income $500,000 Total

The following information is reported for the current year for North Atlantic Division of XT Enterprises:

Sales $3,800,000

Interest expense $250,000

Net income $500,000

Total assets $5,000,000

Noninterest-bearing current liabilities $400,000

Cost of capital 8%

Required rate of return 14%

Tax rate 30%

How much is the divisions return on investment rounded to one decimal?

12.5%

7.1%

16.3%

14.7%

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

Exercise 3-14A (Algo) Effect of accounting events on the income statement and statement of cash flows LO 3-1, 3-2, 3-3 Required: Explain how each of the following events or series of events and the...

Q:

The following information is reported for the current year for North Atlantic Division of XT Enterprises: Sales $3,800,000 Interest expense $250,000 Net income $500,000 Total assets $5,000,000...

Q:

The following information is reported for the current year for North Atlantic Division of XT Enterprises: Sales $3,800,000 Interest expense $250,000 Net income $500,000 Total assets $5,000,000...

Q:

just fill in the yellow parts thank u Date Fled: Feb 19,2020 Period End: Dec 31, 2019 EL LILLY AND COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Dollars in millions, shes in thousands) in the...

Q:

Answer ALL questions in this paper. [100 MARKS] QUESTION 1 (20 MARKS) REQUIRED Answer the following questions based on the information provided below: 1.1 Calculate the distribution expenses for the...

Q:

NCOME STATEMENT AIR CARE SERVICES January 1 to March 31, 2024 Revenue 4000 GENERAL REVENUE 4100 Installation Revenue $ 82 500 4140 Service Contract Revenue 9 900 4160 Subcontracting Revenue 21 000...

Q:

Gus Sdn Bhd is a seafood business with headquarters in Sandakan, Sabah. Gus Sdn Bhd products include many varieties of seafood but one item lacking in its product range is Atlantic Salmon. On 15 June...

Q:

Need assistance in describing Hisco's company using the Strengths, Weaknesses, Opportunities, and Threats (SWOT Analysis) based on the information I attached. Also, what would be the best strategy...

Q:

if some one would be able to help me describe Hisco's company using the Strengths, Weaknesses, Opportunities, and Threats (SWOT Analysis) based on the information provided. Also,what the best...

Q:

Fenny Ltd.s comparative statements of financial position and statement of profit or loss and other comprehensive income for the year ended 30 June 2017 are shown below: Fenny Ltd Comparative...

Q:

if some one would be able to help me describe Hisco's company using the Strengths, Weaknesses, Opportunities, and Threats (SWOT Analysis) based on the in photos attached. Also, what the best strategy...

Q:

The following series of transactions occurred during 2009: January 1 Beginning inventory was 70 units at $10 each January 15 Purchased 100 units at $11 each February 4 Sold 60 units at $20 each March...

Q:

Oriole Engineering Corporation purchased conveyor equipment with a list price of $54,600. Three independent cases that are related to the equipment follow. Assume that the equipment purchases are...

Q:

Which of the following is true of the bank s right to charge to a customer s account? Multiple Choice Even though payment of a check creates an overdraft in the account, the bank does not have the...

Q:

Victor Mineli, the new controller of Sheffield Corp., has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2 0 2 2 . Here are his findings:...