Figure 19-3
the Following Results for the Year Pertain to the Maddox

Multiple Choice

Figure 19-3
The following results for the year pertain to the Maddox Division of Ryan Ltd.: $\begin{array}{lr}\text { Sales } & E 640,000 \\\text { Variable expenses } & 160,000 \\\text { Fixed expenses } & 300,000\end{array}$ The weighted average cost of capital is 12 per cent. The firm's minimum required rate of return is 14 per cent. Taxes for the firm are 40 per cent.
-Refer to Figure 19-3. If average operating assets are £1,000,000, return on investment for the Maddox Division is

A) 48%.
B) 34%.
C) 18%.
D) 16%.