Pendant Publishing reported the following results for its Textbook Division: Pendant's target rate of return is 15% and the weighted average cost of capital is 10%. Its effective tax rate is 35%.
What is the Textbook Division's Return on Investment (ROI)?
A)20.00%
B)45.45%
C)40.00%
D)200.00%

Question

Pendant Publishing reported the following results for its Textbook Division:  Pendant's target rate of return is 15% and the weighted average cost of capital is 10%. Its effective tax rate is 35%.
What is the Textbook Division's Return on Investment (ROI)?
A)20.00% 
B)45.45% 
C)40.00% 
D)200.00%

Quizplus · Accepted Answer

The Answer of Pendant Publishing reported the following results for its Textbook Division:  Pendant's target rate of return is 15% and the weighted average cost of capital is 10%. Its effective tax rate is 35%.
What is the Textbook Division's Return on Investment (ROI)?
A)20.00% 
B)45.45% 
C)40.00% 
D)200.00%

Pendant Publishing Reported the Following Results for Its Textbook Division