The following are selected data for the division for the consumer products of ABC Corp for 2019: Sales 50,000,000 Average invested capital (assets) 20,000,000 Net income 2,000,000 Cost of capital 8% What is the interest rate spread for the division? (Hint: the spread is equal to the ROI less the cost of capital.) 2% 8% 10% 20% Group of answer choices 1 2 3 4
The following are selected data for the division for the consumer products of ABC Corp for 2019: Sales 50,000,000 Average invested capital (assets) 20,000,000 Net income 2,000,000 Cost of capital 8% What is the interest rate spread for the division? (Hint: the spread is equal to the ROI less the cost of capital.) 2% 8% 10% 20% Group of answer choices 1 2 3 4
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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- The following are selected data for the division for the consumer products of ABC Corp for 2019:
Sales 50,000,000
Average invested capital (assets) 20,000,000
Net income 2,000,000
Cost of capital 8%
What is the interest rate spread for the division? (Hint: the spread is equal to the ROI less the cost of capital.)
- 2%
- 8%
- 10%
- 20%
Group of answer choices
1
2
3
4
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