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Use the Information Below to Answer the Following Question(s)

Question 121

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Use the information below to answer the following question(s) :
The Beverage Division of Natural Foods Corporation had sales of $4,200,000 and operating income of $840,000 last year. The total assets of the Beverage Division were $1,680,000, while current liabilities were $360,000. Natural Foods Corporation's target rate of return is 9%, while its weighted average cost of capital is 7%. The effective tax rate for the company is 40%.
-What is the Beverage Division's Return on Investment (ROI) ?


A) 250.00%
B) 50.00%
C) 20.00%
D) 8.57%

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