Thunder Sports Enterprises
the Basketball Division of Thunder Sports Enterprises

Multiple Choice

Thunder Sports Enterprises
The Basketball Division of Thunder Sports Enterprises reported the following financial data for the year:
$\begin{array}{ll}\text { Assets available for use } & \$ 1,200,000 \text { Book Value } \\& \$ 1,500,000 \text { Market } V \text { alu } \\\text { Residual income } & \$ 108,000\\\text { Return on innvestment } & 14\%\end{array}$

Refer to Thunder Sports Enterprises.What was the target rate of return for Thunder Sports Enterprises?

A) 4%
B) 5%
C) 7%
D) 9%