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Solister, Inc If the Asset Base Is Decreased by $185,450, with No

Question 97

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Solister, Inc., had the following information:  Asset base in Solister, Inc. $625,500 Net income in Solister, Inc. $75,950 Weighted average cost of capital 12% Target return on investment (ROI)  15% Margin for Solister, Inc. 20%\begin{array} { l r } \text { Asset base in Solister, Inc. } & \$ 625,500 \\\text { Net income in Solister, Inc. } & \$ 75,950 \\\text { Weighted average cost of capital } & 12 \% \\\text { Target return on investment (ROI) } & 15 \% \\\text { Margin for Solister, Inc. } & 20 \%\end{array} If the asset base is decreased by $185,450, with no other changes, what will the return on investment of Solister, Inc. be? (Round the answer to two decimal places.)


A) 5.79%
B) 12.50%
C) 17.26%
D) 30.00%

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