The East Region of Paterson Industries had average operating assets of $875,000 and earned a net operating income of $131,250 in the third quarter. The company uses a minimum required rate of return of 15% for performance evaluation purposes. What was the East Region's minimum required return for the third quarter?
The East Region of Paterson Industries had average operating assets of $875,000 and earned a net operating income of $131,250 in the third quarter. The company uses a minimum required rate of return of 15% for performance evaluation purposes. What was the East Region's minimum required return for the third quarter?
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Transcribed Image Text:The East Region of Paterson Industries had average operating assets of
$875,000 and earned a net operating income of $131,250 in the third quarter.
The company uses a minimum required rate of return of 15% for
performance evaluation purposes. What was the East Region's minimum
required return for the third quarter?
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