Carey, Inc. provides the following information: Profit margin ratio 5% Asset turnover ratio 2 times Net sales $450,000 Target rate of return 9% Calculate the return on investment. A) 10% B) 45% C) 4% D) 14%
Carey, Inc. provides the following information: Profit margin ratio 5% Asset turnover ratio 2 times Net sales $450,000 Target rate of return 9% Calculate the return on investment. A) 10% B) 45% C) 4% D) 14%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
100%
Calculate the return on investment?
Transcribed Image Text:Carey, Inc. provides the following information:
Profit margin ratio 5%
Asset turnover ratio 2 times
Net sales
$450,000
Target rate of return 9%
Calculate the return on investment.
A) 10%
B) 45%
C) 4%
D) 14%
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