The Southern Division of Amelia Corporation Had Sales of $6,500,000

Multiple Choice

The Southern Division of Amelia Corporation had sales of $6,500,000 and operating income of $1,200,000 last year.The total assets of the Southern Division were $3,000,000,while current liabilities were $450,000.Amelia Corporation's target rate of return is 10%,while its weighted average cost of capital is 6%.The effective tax rate for the company is 30%.
What is the Southern Division's Return on Investment (ROI) ?

A) 25.00%
B) 6.00%
C) 40.00%
D) 200.00%