Multiple Choice
The Pathways Company has an asset turnover of 3.0 times, using assets of $45,000. The company also has a return on investment (ROI) of 20%. If the residual income was $2,250, what was the company's cost of capital?
A) 6.0%.
B) 10.0%.
C) 15.0%.
D) 20.0%.
Correct Answer:
Verified
Correct Answer:
Verified
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