The Southern Division of Amelia Corporation Had Sales of $61,000,000

Multiple Choice

The Southern Division of Amelia Corporation had sales of $61,000,000 and operating income of $200,000 last year. The total assets of the Southern Division were $2,000,000, while current liabilities were $500,000. Amelia Corporation's target rate of return is 6%, while its weighted average cost of capital is 5%. The effective tax rate for the company is 35%. What is the Southern Division's Return on Investment (ROI) ?

A) 0%
B) 25%
C) 10%
D) 1000%