Please do not give solution in image format thanku Dave Inc.'s cost of capital is 13%. The company has provided you with a summary ofits annual reports from two of its divisions:Capital investedNet incomeDivision A$4,750$2,175Division B$8,100$2,500The manager of Division B is considering a proposal for a new investment that willhave the following incremental income and assets over the coming year:Income - $415Assets - 2,525If the proposal were accepted, what would Division B's ROI be?Enter your answer as a number with two decimal places. For example, 35% becomes0.35.

Here,Net Income from Division B is $2,500Capital Invested by Division B is $8,100Net Income from new…

Answered: Dave Inc.'s cost of capital is 13%. The…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 4P

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