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Perez Corp Its Required Return Is 10

Question 52

Essay

Perez Corp. reported the following:  Beginning of year operating assets $3,200,000 End of year operating assets 3,000,000 Contribution margin 1,000,000 Sales 5,000,000 Controllable fixed costs 643,000\begin{array}{lc}\text { Beginning of year operating assets } & \$ 3,200,000 \\\text { End of year operating assets } & 3,000,000 \\\text { Contribution margin } & 1,000,000 \\\text { Sales } & 5,000,000 \\\text { Controllable fixed costs } & 643,000\end{array} Its required return is 10%.
Instructions
Compute the company's ROI.

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($1000000 - $643000)...

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