Continental Publishing Company
the Magazine Division of Continental Publishing Company

Multiple Choice

Continental Publishing Company
The Magazine Division of Continental Publishing Company had the following financial data for the year:
$\begin{array}{ll}\text { Assets available for use } & \$ 1,000,000 \text { Book Value } \\& \$ 1,500,000 \text { Market } V \text { alu } \\\text { Residual income } & \$ 100,000\\\text { Return on innvestment } & 15\%\end{array}$

Refer to Continental Publishing Company.What was the target rate of return for Continental Publishing Company?

A) 10%
B) 15%
C) 25%
D) 5%