Hallen Division has been stagnant over the past five years, neither growing nor contracting in size and profitability. Investments in new property, plant, and equipment have been minimal. Would the division's use of total assets (valued at net book value) when measuring ROI result in (1) using numbers that are consistent with those on the balance sheet and (2) a rising ROI over time? $$\begin{array}{l}
\text { Consistent with Numbers Produce a Rising Return on }\
\begin{array} { l l l }
& \text { on the Balance Sheet? } &{ \text { Investment Over Time? } } \
\text { A. } & \text { Yes } & \text { Yes } \
\text { B. } & \text { Yes } & \text { No } \
\text { C. } & \text { No } & \text { Yes } \
\text { D. } & \text { No } & \text { No } \
\text { E. } & \text { Yes } & \text { Need more information to } \
& &{ \text { judge } }
\end{array}
\end{array}$$

Question

Hallen Division has been stagnant over the past five years, neither growing nor contracting in size and profitability. Investments in new property, plant, and equipment have been minimal. Would the division's use of total assets (valued at net book value) when measuring ROI result in (1) using numbers that are consistent with those on the balance sheet and (2) a rising ROI over time? $$\begin{array}{l}
\text { Consistent with Numbers Produce a Rising Return on }\
\begin{array} { l l l } 
& \text { on the Balance Sheet? } &{ \text { Investment Over Time? } } \
\text { A. } & \text { Yes } & \text { Yes } \
\text { B. } & \text { Yes } & \text { No } \
\text { C. } & \text { No } & \text { Yes } \
\text { D. } & \text { No } & \text { No } \
\text { E. } & \text { Yes } & \text { Need more information to } \
& &{ \text { judge } }
\end{array}
\end{array}$$

Quizplus · Accepted Answer

The Answer of Hallen Division has been stagnant over the past five years, neither growing nor contracting in size and profitability. Investments in new property, plant, and equipment have been minimal. Would the division's use of total assets (valued at net book value) when measuring ROI result in (1) using numbers that are consistent with those on the balance sheet and (2) a rising ROI over time? $$\begin{array}{l}
\text { Consistent with Numbers Produce a Rising Return on }\
\begin{array} { l l l } 
& \text { on the Balance Sheet? } &{ \text { Investment Over Time? } } \
\text { A. } & \text { Yes } & \text { Yes } \
\text { B. } & \text { Yes } & \text { No } \
\text { C. } & \text { No } & \text { Yes } \
\text { D. } & \text { No } & \text { No } \
\text { E. } & \text { Yes } & \text { Need more information to } \
& &{ \text { judge } }
\end{array}
\end{array}$$

Hallen Division Has Been Stagnant Over the Past Five Years