Assume Division 1 of the XYZ Company Had the Following

Multiple Choice

Assume Division 1 of the XYZ Company had the following results last year.
$\begin{array}{|l|r|}\hline\text { Sales } & \$ 3,000,000 \\\hline \text { Operating income } & 500,000 \\\hline \text { Total as sets (average) } & 4,500,000 \\\hline \text { Current liabilities } & 300,000\\\hline\end{array}$
Management's required rate of return is 8% and the weighted average cost of capital is 6%. Its effective tax rate is 30%.
-What is the division's return on investment?

A) 5%
B) 10%
C) 20%
D) 50%