Grady Corporation provides the following financial information:

Calculate the target rate of return.(Round your answer to two decimal places. )
A)20.00%
B)82.35%
C)26.92%
D)61.18%

Question

Grady Corporation provides the following financial information:

Calculate the target rate of return.(Round your answer to two decimal places. )
A)20.00% 
B)82.35% 
C)26.92% 
D)61.18%

Quizplus · Accepted Answer

A)Minimum acceptable operating income = Target rate of return × Average total assets
Target rate of return = Minimum acceptable operating income / Average total assets = $520,000 / $2,600,000 = 20.00%

Grady Corporation Provides the Following Financial Information