Figure 6 The Following Results for the Year Pertain to the Maddox

Multiple Choice

Figure 6
The following results for the year pertain to the Maddox Division of Ryan Ltd.:
The weighted average cost of capital is 12 percent. The firm's minimum required rate of return is 14 percent. Taxes for the firm are 40 percent.
-Refer to Figure 6. If average operating assets are £1,000,000, return on investment for the Maddox Division is

A) 48%
B) 34%
C) 18%
D) 16%